FULL DISCLOSURE: This is sponsored content for Vortex Metals.
Vortex Metals (TSXV: VMS) has stepped out of Mexico to acquire an option in Chile for an interest in the Illapel Copper Project, following a letter of intent entered into in July.
The arrangement will see the junior explorer earn up to an 80% interest in the property over a six year period, based on certain milestones being met.
The Illapel copper project, found 250 kilometres north of Santiago, consists of a 8,000 hectare prospective land package, which is said to exhibit favourable geology that extends north and south from the Rio 27 Mine. The property has access to paved roads, a power grid and water, and is capable of year round drilling, with exploration permits already in hand.
The Rio 27 Mine, certain concessions of which are included in the option agreement, has been operating since 2010. 400,000 tonnes of material grading 1.39% copper has been processed from the asset to date.
The property is prospective for both copper and silver, which is found in felsic dykes and andesite porphyry dykes that are associated with the nearby Rio 27 mine. Several epithermal veins are also known to exist on the western portion of the project.
In terms of exploration, once approvals are in place, Vortex intends to test high-priority drill ready targets to the north and south along strike of the Rio 27 mine, map sample and test targets related to the epithermal veins, and begin a system of mapping and sampling favourable structure within the project area. Drill testing is currently slated to occur in 2024.
The option agreement will see Vortex obtain the option to acquire a 60% stake in the project, which requires the company to make cash payments of $1.1 million over a four year period, and grant 23 million shares over a six year period. $10 million in exploration expenditures must also be spent over a five year period, while a pre-feasibility study must be completed in the first six years.
Once the terms of the first option is met, the company will be eligible to increase its ownership in the property to 80%, and will also have the right of first refusal on the Rio 27 Mine and processing facility.
“With Illapel property option now in our property stable alongside our two Mexican projects Riqueza Marina and Zaachila, we believe that we provide our shareholders with three excellent opportunities to potentially make a discovery that could dramatically impact Vortex Metal,” commented Vortex’s chairman Michael Williams on the transaction.
Vortex Metals last traded at $0.11 on the TSX Venture.
FULL DISCLOSURE: Vortex Metals is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Vortex Metals. The author has been compensated to cover Vortex Metals on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
