The Quinchia portfolio covers 6,043 hectares (Ha) of granted concessions and an additional 3,792Ha of pending applications, and contains a number of deposits and exploration targets including Miraflores, Dosquebradas and Tesorito.
Miraflores has measured and indicated resources of 72.6mln tonnes (Mt) at grades of 0.78 grams per tonne (g/t) gold and 1.52 g/t silver, with a further 3.76 Mt at 0.51 g/t gold in the indicated category.
Previous owner Mineras Seafield spent US$29mln on exploration at the project before its parent went bust just before completion of a feasibility study.
A technical report based on that work looked at a small mine operation at Miraflores producing 504,000 oz of gold and 280,000 silver from 12 years of operation at an all-in cost of US$682 an ounce.
Metminco believes it can substantially reduce the costs in the technical report.
In addition, it sees scope for further discoveries at Tesorito and in the surrounding Quinchia licence area, which has already seen a number of large mines developed.
Mineras Seafield owns 100% of Quinchia. Metminco will purchase it from current owner RMB, an Australian firm.
The consideration is 50mln shares at 0.5p in an initial payment, with a further 350mln shares on settlement along with A$0.5mln cash for costs already incurred.
There are also staged payments of A$7mln up to the point a mine opens at the licence after which a further A$7mln royalty payment becomes due.
more to follow