Peruvian Metals Assigns the Development of the Mansa Musa Gold-Silver Project
Peruvian Metals Assigns the Development of
the Mansa Musa Gold-Silver Project
Edmonton, Alberta--(Newsfile Corp. - October 6, 2020) -
Peruvian Metals Corp. (TSXV: PER)
("Peruvian Metals" or the "Company") is pleased to announce that it has entered into agreements with a
group of Peruvian private investors to purchase the Mansa Musa Gold-Silver property (the "Property").
The investors are supported by GEXEG S.A.C ("GEXEG"), a private mining consulting company based
in Lima. The Property is located in the Department of Huancavelica, 300 kilometres southeast of Lima
and consists of five concessions totaling 3600 hectares where previous operators have spent in excess
of US$5 million on exploration on the main concessions. Payments to the Company totaling
US$940,000 will be made over seven years with up to 3% NSR payable to Peruvian Metals on all metal
production. On the two main concessions, the 3% NSR will be payable solely to Peruvian Metals and on
the three surrounding concessions 2% will be paid to Franco-Nevada and 1% to Peruvian Metals.
The first agreement, subject to a five month due diligence period, is a five year assignment agreement
whereby the investors supported by GEXEG can control and develop the Property without obtaining
property ownership. The group will be responsible for environmental remediation and will make
payments to the Company during the first three years of the assignment agreement totaling
US$415,000. The group commits to a production decision within the second year of the agreement.
Once the first agreement expires, the group can enter into a second agreement to purchase 100% of the
property still subject to a 3% NSR and by making payments over two years totaling US$525,000.
GEXEG will be supporting all evaluation, exploration and development for the group of investors.
Established in 2013, GEXEG Consultores is a highly reputable group of Peruvian mining professionals
providing services for exploration and mining companies throughout the Peruvian Andes. Celso
Palacios, the founding director of GEXEG, is a geological engineer with over 28 years experience and
was the co-discoverer of the Rescatada gold deposit where Minera Aruntani S.A.C mined over 2 million
ounces of less than 1 g/t gold. GEXEG's staff includes a multidisciplinary group of geological, mining,
metallurgical, industrial and systems engineers as well as experts in cost control and finance. GEXEG's
clients include Minas Buenaventura, NEXA, El Brocal, Korea Zinc, Chinalco, Sumitomo, Hudbay, Kaizen
Discovery, OZ Minerals and Sumitomo Metal Mining.
The Mansa Musa project is underlain by Tertiary age volcanic rocks with high sulphidation style
mineralization similar to Barrick's Pierina and Alto Chicama mines and Newmont and Buenaventura's
Yanacocha mine in Peru. Other notable and comparable high sulphidation oxide gold properties in
Southern Peru include Pan American's Pico Machay, Minera IRL's Corihuami and Aruntani's Rescatada
(now called Arasi) mines. It is important to note that the style of the near surface oxide gold
mineralization allows for low cost extraction.
Jeffrey Reeder, the CEO and Chairman of Peruvian Metals, comments: "We are very pleased to have
GEXEG involved in the development our Mansa Musa Gold-Silver project in Southern Peru. They have
the in-house expertise to plan and execute a mine plan which will be beneficial to Peruvian Metals.
Having retained a significant NSR on the Property will allow our Company to focus on its high grade
projects in Northern Peru and the Huachocolpa area while generating a substantial new revenue
stream."
Jeffrey Reeder, P Geo, a qualified person as defined in National Instrument 43-101, has prepared,
supervised the preparation or approved the scientific and technical disclosure contained in this news
release.
About Peruvian Metals Corporation
Peruvian Metals Corp. is a Canadian Exploration and Mineral Processing company. Our business
model is to provide toll milling services for clients and to produce high grade concentrates from mineral
purchases. The company continues to acquire and develop precious and base metal properties in Peru.
For further information on Peruvian Metals Corp. please visit
www.peruvianmetals.com
.
Peruvian Metals Corporation. is a Canadian resource company listed on the
TSX Venture Exchange: Symbol "PER"
For additional information, contact:
Jeffrey Reeder Tel: (647) 302-3290
Website:
www.peruvianmetals.com
Email:
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Disclosure Regarding Forward-Looking Statements:
This press release contains certain "Forward-
Looking Statements" within the meaning of applicable securities legislation. We use words such as
"might", "will", "should", "anticipate", "plan", "expect", "believe", "estimate", "forecast" and similar
terminology to identify forward looking statements and forward-looking information. Such statements and
information are based on assumptions, estimates, opinions and analysis made by management in light
of its experience, current conditions and its expectations of future developments as well as other factors
which it believes to be reasonable and relevant. Forward-looking statements and information involve
known and unknown risks, uncertainties and other factors that may cause our actual results to differ
materially from those expressed or implied in the forward-looking statements and information and
accordingly, readers should not place undue reliance on such statements and information. Risks and
uncertainties are more fully described in our annual and quarterly Management's Discussion and
Analysis and in other filings made by us with Canadian securities regulatory authorities and available at
www.sedar.com
. While the Company believes that the expectations expressed by such forward-looking
statements and forward-looking information and the assumptions, estimates, opinions and analysis
underlying such expectations are reasonable, there can be no assurance that they will prove to be
correct. In evaluating forward-looking statements and information, readers should carefully consider the
various factors which could cause actual results or events to differ materially from those expressed or
implied in the forward looking statements and forward-looking information.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/65275