- Q-Gold Resources (QGR) has agreed to an earn-in deal to acquire up to 100 per cent of the Surupana Silver Property in Peru
- To acquire all 100 per cent Q-Gold must pay out 14 million shares, C$175,000 in cash and complete $1.8 million in exploration work on the property over five years
- Surupana has not been substantially explored since the 1960’s and 1970’s, but has returned historic rock chip samples up to 1880 grams per tonne silver
- Q-Gold hopes to investigate new areas of mineralisation on the property, which have yet to be tested with modern exploration techniques
- Q-Gold Resources (QGR) is down two per cent and is trading at 49 cents per share
Q-Gold Resources (QGR) has signed an option agreement to pick up the Surupana Silver Property in Peru.
Q-Gold can acquire 100 per cent of the property through several tranches, which include paying C$175,000 in cash over the next four years, plus an additional $25,000 upon signing.
Q-Gold will also issue out an average of 14 million common shares to the vendor, which includes 13 million upon signing the agreement. The remaining one million shares will be issued in tranches of 250,000 over the next five years.
Alongside this, Q-Gold will need to spend $1.8 million in exploration over the next five years, with progressively increasing inbuilt minimum spends each year.
Previous work at the property was focused primarily at the Supah Huasi Reconnasisance area, a 950-metre by 800-metre area that returned high-grade gold results more than 60 years ago.
96 rock chip samples were taken from the property, returning results as high as 1880 grams per tonne silver. Q-Gold believes the property is littered with untested exploration targets, which can be unlocked with modern exploration techniques.
The property has up to a dozen historic mines scattered throughout it, and has been sporadically explored through the 1960’s and 1970’s.
The Q-Gold CEO Evan Veryard said he was excited to close the acquisition agreement so quickly.
“As can be seen from the technical highlights, this property holds significant promise, especially in a rising silver price environment.
“Previous sampling work and historical mining will help us narrow our focus as we develop a work plan to capitalise on this property in the mineral-rich altiplano region,” he said.
Q-Gold Resources (QGR) is down two per cent and is trading at 49 cents per share at 2:00 pm EDT.