Condor sells its bonanza grade gold-silver project in Peru
Kitco News has launched its 2021 Outlook, which offers the most comprehensive coverage of precious metals markets in the new year. Trillions of dollars were pumped into financial markets in 2020 and that won't come without consequences. Economists expect that investors will be Bracing For Inflation in 2021.
(Kitco News) - Condor Resources (TSXV:CN) announced today that it has concluded an agreement with Calipuy Resources whereby Calipuy will purchase Condor's wholly owned Lucero gold-silver project located in the Arequipa Department of Peru.
The company said that consideration is US$3.5 million, payable over five years. Should the price of gold be over US$2,500/ounce at the time of the final payment, total consideration will increase to US$4.0 million; and should the price of gold be over $3,000/ounce at the time of the final payment, the total consideration will increase to US$6.0 million.
Sandstorm Gold will keep holding a 0.5% NSR on the Lucero project.
President Lyle Davis commented, "Minas Buenaventura operated 3 underground mines at Lucero until circa 2005, several years prior to Condor acquiring the project. Condor leased the project to a Peruvian based mining company in 2015, and when the lease was terminated in late 2019, we made the strategic decision to monetize the project, and concentrate our efforts on four key exploration projects: Pucamayo, Huinac Punta, Cobreorco, and Andrea. Calipuy management have brought two mines into production, and we are confident they will be successful with a re-start at Lucero."
The Lucero property is located in the Chila Range of southern Peru, about 22 kms southeast of Buenaventura's Orcopampa mine.
Buenaventura operated three underground mines on the concessions and stopped mining in approximately 2005. Reported production averaged approximately 20,000 ounces of gold and 470,000 of silver per year at average grades of 14.7 g/t gold and 450 g/t silver.