Evrim Resources Corp (CVE:EVM) has inked a deal with copper giant Antofagasta plc (LON:ANTO) over the Ball Creek property in British Columbia.
Antofagasta will have the exclusive right to complete due diligence and negotiate a deal to buy up to a 70% interest in the property, which is a 524 square kilometre copper-gold porphyry and epithermal gold-silver project, by spending up to US$31 million.
Paddy Nichol, the chief executive of Evrim, told investors: "Ball Creek is a large land package in the Golden Triangle that carries significant district scale exploration potential for gold rich copper porphyry targets.
"Our exploration work over the past two summers coupled with previous data sets demonstrate the potential for multiple discoveries at Ball Creek.
"We look forward to completing the definitive agreement with Antofagasta this spring and commencing exploration at Ball Creek this summer."
Previous drilling has hit 231 metres at 0.21% copper and 0.54 g/t (grams per ton) gold in one hole, including 45.8 metres grading 0.31% copper and 0.69 g/t gold.
Under the terms, Antofagasta will conduct due diligence and may provide funding for planning activities up to the signing of a Definitive Agreement, which is expected to be completed on or before April 15, 2017.
Upon the execution of the Definitive Agreement, Antofagasta will take an option to acquire up to a 70% interest in Ball Creek by spending US$31 million over a thirteen year period, with a minimum commitment of US$300,000 in 2017.
Upon signing the definitive agreement, Antofagasta can earn an initial 51% interest by spending US$6 million over six years.