Jul 26 2013
Strait Minerals Inc. is pleased to report it has received approval from Peru's Mines Minister to resume drilling at its 100%-owned Alicia copper-gold property.
A 6,000-metre drill program at Alicia was put on hold in October, 2012, pending clarification by the ministry of regulations regarding consultation with indigenous people.
When the drill program was put on hold, the Company and Teck Peru S.A. ("Teck Peru"), a wholly owned subsidiary of Teck Resources Limited ("Teck"), agreed to extend all terms of their option agreement until drilling resumed. An agreement with the community regarding access rights and social contributions by the Company was renewed for two years in 2012.
Strait has granted to Teck Peru an option to earn up to a 75% interest in the Alicia property by, among other things, spending $30 million on exploration or by spending $10 million on exploration and delivering a pre-feasibility study (news release dated Dec. 9, 2011). Teck Peru's first $2 million of expenditures, or cash payment in lieu of expenditures, is mandatory. To date Teck Peru has spent approximately $1.5 million.
Teck currently holds 3,000,000 share-purchase warrants giving it the right to acquire 3,000,000 common shares of the Company at $0.35 per share until December 31, 2013. Teck must exercise the warrants and Teck Peru must complete $4 million of expenditures on the property in order to earn an initial 45% direct interest in the property. Strait receives a 10% administration fee for managing the exploration program on Teck Peru's behalf.