TSXV-listed Gold State Resources completes Peruvian copper-gold acquisition

Junior exploration firm Gold State Resources has closed the acquisition of the mineral claims comprising the Panteria copper-gold porphyry project from Peruvian Metals Corp.

The project, located approximately 210 km Southeast of Peru’s capital Lima, is considered highly prospective for both copper-gold porphyry-style mineralisation and high-level gold-silver epithermal mineralisation, Gold State said in a news update.

The TSXV-listed company first announced the deal for Panteria in April, and will now pay 50% of the total US$200,000 consideration with the remaining 50% to be paid six months from now. Golden State has also given Peruvian a total of 4,637,500 common shares of the company, with a further 4,637,500 shares payable six months thereafter.

Additional milestone payments include C$750,000 (or shares with the equivalent value) to be paid on or before the completion date of 10,000 metres of drilling at the project, and an additional C$750,000 (or shares with the equivalent value) payable on or before the completion of 20,000 metres of drilling.

Gold State has granted Peruvian a 1% net smelter return royalty for the project on the terms and conditions of a transferable net smelter royalty agreement to be agreed upon between the parties.

Panteria is comprised of several mineral concessions covering an area of 2,700 hectares and is believed to be situated in the Northern extension of the Southern Coastal porphyry belt.

Peruvian conducted extensive surface sampling and mapping programmes and a geophysical programme in 2014, before the project was optioned by First Quantum in 2016. A total of 8,699 metres were drilled on the project by First Quantum in 11 holes.