Condor Resources Inc. (TSX-V:CN, OTC:CNRIF) earlier this week announced it has signed a Letter of Intent to sell its Soledad project.
The company said the sale will bring $3 million dollars over a three-year period. It confirmed that the agreement includes an upfront payment which will support drilling activities at Huiñac Punta.
CEO Chris Buncic highlighted that Soledad hosts almost 2% copper equivalent in lens-type formations and breccia pipes.
Proactive: The company came out with some news that you have decided to move along one of your projects. Let’s talk about the project itself and the reasoning behind it.
Chris Buncic: Sure. Well, I made an announcement just last week that we were looking to sell our Soledad project. We have an LOI signed with a local buyer, and under the terms of that LOI, we’ll see $3 million dollars come in the door over the course of the next three years, with some money up front that’s going to enable us to go do some drilling. This is the project that we had unfortunately taken back from Chakana Copper back in October and then solidified that in the first quarter of this year. But now we’re able to monetize it and move on towards supporting the projects that we really care about, being Huiñac Punta and Pucamayo.
And you’ve also retained royalty on this as well, so there is a little back end for your shareholders as well.
Correct. Yes. This is a great project. It’s got almost 2% copper equivalent in these lens-type formations, in these breccia pipes. And so, the new buyer, I think, is excited to be able to go exploit those. And we’re happy to have a little piece of it along for the ride.
As you mentioned, your big focus is elsewhere. Just remind everyone a little bit about where you’re at with those two projects. This money allows you to get some things done and allows you to move forward with those?
Correct. Huiñac Punta is fully permitted. We had a small financing a couple of months ago in May, and we’re shoring up the balance sheet with the sale of this asset. We’ll be able to deploy some funds to go drill off Huiñac Punta when this closes. We’re working towards that definitive agreement over the next six to eight weeks, after which we’ll get busy. At Pucamayo, which has a high-sulfidation epithermal gold target, we’re looking to get that process approved with the ministry. We’re still working on that, which has certainly drawn out, and I know our investors are acutely aware, and some are probably mildly frustrated, as are we. But we’re making progress. Those two projects, coupled with what we’re expecting to come from Teck Resources Ltd (TSX:TECK.B) on Cobreorco, I think this is going to be an exciting few months. We’ll start to get newsy through the summer and into the fall.
Quotes have been lightly edited for clarity and style