Ontario-based junior explorer Western Metallica Resources has agreed to acquire Consolidated Copper, a Canadian company that holds mineral claims in Peru.
Consolidated Copper owns a 100% interest in Caña Brava and Turmalina, two highly prospective copper-molybdenum porphyry projects in northern Peru. Through this acquisition, Western Metallica will now own the two projects.
Western Metallica agreed to buy 100% of Consolidated Copper’s shares in exchange for 20 million of its shares and five million share purchase warrants. Each warrant entitles the holder to purchase one additional share at an exercise price of $0.1 under certain conditions.
According to Western Metallica, the purchase of the two projects will provide access to a region known for its mineral potential.
Peru is considered to be one of the largest copper producers globally. Furthermore, its mining-friendly jurisdiction makes it an attractive mining destination.
The Caña Brava project covers 5,100 hectares (ha) of land and is located in the La Libertad Department of northern coastal Peru.
The highly prospective copper-molybdenum project is claimed to contain at least three partially eroded porphyry centres. There is also a potential for a medium-sized cluster of porphyry copper-molybdenum systems at the project.
The Turmalina project is located in the Piura region of the northern coastal region of the country. Covering 2,600ha, it is located at an elevation of 2,600m in the western Cordillera of the Peruvian Andes.
The project contains widespread porphyry-style phyllic alteration, sulfidic veining and several small quartz-tourmaline breccia pipes. These suggest the potential for a very large porphyry copper-molybdenum system under the breccia systems.
Western Metallica Resources CEO and director Gregory Duras said: “Both projects lie on a copper-porphyry belt that has seen notable exploration and production success, but with much of the central and northern portions of the belt remaining significantly under-explored and, therefore, a region of compelling interest.
“Given the strength of the company’s balance sheet and the current positive market dynamics for copper, this is an opportune time for the company to make this strategic acquisition.”
