October 8 (SeeNews) - Canadian mineral exploration and development company Mundoro Capital said it has granted to Vale Canada Limited an option to earn-in to four of its copper-gold exploration licences in Serbia.
The earn-in agreement covers the Sumrakovac, Osnic, Dubrava and Padina licences, all located within the Timok Magmatic Complex, one of the most prolific metallogenic domains in the Tethyan Belt, Mundoro Capital said in a statement on Monday.
Under the agreement, Mundoro has granted to Vale an option to earn, over two primary phases, up to a 75% interest in the Vale-Mundoro Projects by sole funding expenditures of up to $45 million (41 million euro), the company said.
In phase one, Vale has the right to earn a 51% interest in the projects by sole-funding $5 million in expenditures over 3 years from satisfaction of the due diligence condition. Vale can earn an additional 24% interest in the projects in phase two, for a total 75% interest, by sole-funding an additional $40 million in expenditures by the fifth anniversary of the election date.
"Mundoro is pleased to welcome Vale as our latest partner in Serbia, which reflects the prospectivity of Mundoro’s land package within the Timok region and demonstrates the growing interest in this region," Teo Dechev, CEO and president of Mundoro, noted.
The parties have agreed to establish a new Serbian corporation as the legal vehicle representing the earn-in/joint venture and to hold the relevant licences and permits.
($ = 0.910548 euro)