- Magna Terra’s (TSXV:MTT) subsidiary Atala Resources is selling its Boleadora project in Argentina to mining giant Newmont for C$1.34 million
- Newmont will initially pay $33,490 up front, with the remaining funds to transfer hands in tranches over the next six years
- The Boleadora property is a greenfield exploration site and is only 17 kilometres away from Newmont’s Cerro Negro mine
- Newmont is the largest gold miner in the world, following its merger with Goldcorp last year
- Magna Terra (MTT) is in the grey and is trading at two cents per share
Magna Terra’s (TSXV:MTT) subsidiary Atala Resources is selling its Boleadora project in Argentina to mining giant Newmont for C$1.34 million.
Newmont is the largest gold miner in the world, following its merger with Goldcorp last year.
The property Newmont has just acquired is a greenfield land package of 55,000 hectares, which plays host to 12 individual exploration licenses, and sits approximately 17 kilometres south east of Newmont’s Cerro Negro mine.
The payment for the Boleadora project will involve an initial $33,490 payment made up front followed by six further payments over six years.
Magna Terra will retain the two per cent smelter for the property, one per cent of which can be purchased back at any time for a one-off payment of $3.35 million.
Lew Lawrick, the President and CEO of Magna Terra said he was very pleased to have agreed to the sale with Newmont.
“While it is a very large and early stage exploration package, it’s proximity to the Cerro Negro mine makes it of strategic interest to Newmont from an exploration perspective.
“The bulk of the property package lies along trend of the North by North West structural control that is an important geological feature at Cerro Negro.
“Including Boleadora into Newmont’s regional Cerro Negro exploration program, along with the application of their proven exploration technologies, will add significant value to the project, and ensure that is advanced in the near term,” he said.
Magna Terra (MTT) is in the grey and is trading at two cents per share at 3:15 pm EDT.