Caza Mining Corp., subsidiary of Hunt Mining and owner of Cerro Cazador, has just signed a new agreement with State-run Fomicruz to ensure exploratory continuity of La Valenciana project, located in Santa Cruz, until 2019. According to a press release issued by the Canadian mining company, Caza has committed itself to make future investments for around 5 million dollars until October 31st, 2019.
The agreement further states that if the initiative moves towards a production stage, a new company must be created (JV) whose 9% will be owned by Fomicruz. And at the end of the final feasibility study, the Santa Cruz’s company will have a one-time 30-day period to purchase up to an additional 40% of the new JV, which would increase its share up to 49%.
In order to purchase another 10% in the company, Fomicruz should reimburse to Caza 10% of the investment made by Hunt during the exploration period; this way, state intervention in the joint venture company could amount to 19%.
Just north of Joaquín (100% recently acquired by Coeur), La Valenciana is located next to La Josefina, Cerro Cazador’s main project in Argentina. «It is our more advanced proposal, though it will demand more investment to start producing. In that regard, we are redefining the schedule along with Fomicruz, but we expect to go into production between 2016 and 2019,» subsidiary president Danilo Silva announces.
In 2011, Hunt Mining succeeded in closing a financing agreement with Eldorado Gold, which today translates into funds availability to search for precious metal in Santa Cruz geological district of Macizo del Deseado. «We are currently developing explorations in more than 270,000 hectares which are 100% owned by us. Geologists and work teams are walking round that enormous area, and we are conducting regional and detailed exploration and sampling,» Silva explains.