Toronto-based Canuc Resources (CANC-C) has entered into a joint-Venture agreement with Placer Dome (PDG-T) to explore and develop the Nambija gold deposit in southeastern Ecuador.
Under the agreement, Canuc, in return for US$2 million, will issue 900,000 shares to Placer and make available information relating to the property.
The agreement, spread over five years, grants four options which, if exercised, will earn Placer a 60% interest in the property.
To exercise all four options, Placer must: contribute US$10 million to Canuc through stock purchases and cash payments; spend at least US$6 million on exploration; complete a bankable feasibility study; and finance 70% of Canuc’s share of mine development costs.
The 69-ha area is prospective for gold-bearing skarns, silicified feldspar breccias, gold-Copper porphyries and quartz stockworks. The resource is estimated to consist of 8.6 million tonnes grading 7.9 grams gold per tonne.
The deposit was the site of an uncontrolled staking rush during the early 1980s. Artisanal miners are estimated to have dug 2.4 million oz. gold from the area since 1982.
As part of Canuc’s past strategy of consolidating control over Nambija, the company acquired a 40% minority interest in the Ecuadoran mining company Minera Miningandos, which held the Gold Star mine on the Nambija property.
Under the arrangement, Canuc issued 7 million shares and 4 million share-purchase warrants, which are exercisable over two years at a price of $4.50 per share. The company is also required to pay US$5 million in either cash or stock.
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