- Portofino Resources inc. (POR) implements a memorandum of understanding (MOU) with Recursos Energeticos Y Mineros De Salta S.A.
- The MOU gives Portofino an option to earn a majority interest in multiple mining concessions
- Portofino may exercise its option to form a joint venture company in advancing to the next stages of exploration and development
- The option also allows it to hold a minimum 70 per cent interest in any resulting joint venture
- Portofino Resources inc. (POR) is up 13.64 per cent trading at $0.12 per share as of 3:30 p.m. EST
Portofino Resources (POR) has implemented a memorandum of understanding (MOU) with Recursos Energeticos Y Mineros De Salta S.A.
Recursos Energeticos Y Mineros De Salta S.A. is a state-owned mining company for the province of Salta, Argentina.
The MOU gives Portofino an option to earn a majority interest in multiple mining concessions that Recursos holds. The initial mining properties are focused on lithium targets totaling more than 27,000 hectares. The property concessions are in the heart of the Argentine Lithium Triangle and near multiple world-class lithium projects.
Portofino may exercise its option to form a joint venture company in advancing to the next stages of exploration and development. The option is effective for up to two years from initial exploration work in each mining concession.
Portofino will have a preferential right to option any new areas obtained by Recursos under the same terms. The initial exploration campaigns will be financed by Portofino.
Portofino has executed a separate agreement with Ronialem S.R.L. relating to Recursos. Ronialem provided local advice in structuring the agreement and will support ongoing efforts in Salta. In exchange, Ronialem will hold a 15 per cent interest in any joint venture formed with Recursos.
The option provides Portofino with a right of first refusal to match any competing offer where Portofino will hold a minimum 70 per cent interest in any resulting joint venture.
The MOU includes a provision entitling the partners to receive payment of the greater of four times exploration and evaluation expenditures on the concessions or 50 per cent of gross proceeds from the winning bidder.
Portofino Resources inc. (POR) is up 13.64 per cent trading at $0.12 per share as of 3:30 p.m. EST.
