Condor Resources Inc. (TSX-V:CN, OTC:CNRIF) said it has ended its agreement with Chakana Copper regarding the Soledad concessions in Peru due to non-performance.
The agreement, originally signed in April 2017 and amended several times, granted Chakana the right to acquire a 100% interest in the Soledad property.
However, Chakana failed to meet the required US$1 million cash payment due on June 23, 2024, prompting Condor to terminate the deal.
Condor’s CEO, Chris Buncic, acknowledged the exploration work done by Chakana, which had defined an NI 43-101 compliant resource, largely situated on Condor's concessions.
“Coming to revised terms with Chakana to the benefit of Condor's shareholders has been very challenging, but with the project again in our hands, we have a vision for value enhancement for our shareholders,” Buncic said in a statement.
Several high-grade tourmaline breccia targets on the property remain undrilled, noted Buncic, as does the previously drilled potassic-altered mineralized porphyry system at depth.
Under the agreement, Chakana was also required to issue C$200,000 in common shares and make a further US$1.4 million payment by June 2025. Despite multiple amendments, the companies could not agree on revised terms, leading Condor to reclaim ownership of the concessions.
Chakana is responsible for transferring all project data and conducting site remediation. As part of the termination, Condor will grant Chakana a 1% net smelter return (NSR) royalty on the Soledad concessions and a 2 km area of interest for potential future acquisitions.
The Soledad project, located in Peru’s Central Andes, holds significant gold-silver-copper potential, with previous drilling by Chakana confirming valuable mineral resources.