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Revelo Resources inks pact on its Calvario and Mirador Projects with Sociedad

Mining News - Published on Tue, 16 Apr 2019

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Revelo Resources Corp announced that it has signed an Exploration Option Agreement with Sociedad Quimica Y Minera de Chile SA, allowing SQM to acquire up to an 80% interest in two of Revelo's copper-focused projects at Calvario and Mirador in northern Chile. Both Calvario and Mirador display widespread geological characteristics indicative of the upper parts of possible porphyry copper systems, with Calvario having been the subject of minor historic drill testing, and Mirador representing an undrilled prospect. The two projects are contiguous and lie along one of the most prospective mineral belts in northern Chile, which includes major producing copper mines.

Terms of the Exploration Option Agreement include:

5-year option for SQM to explore and earn an 80% interest in the combined properties

Cash payments to Revelo totalling up to US$ 5.225 million distributed over 5 years

Exploration expenditures totalling up to US$ 13.0 million distributed over 5 years

If SQM completes the Option and earns 80% of the combined properties, a joint-venture company (JVC) will be formed with SQM owning 80% and Revelo owning 20%, but SQM will subsequently free-carry Revelo through to the completion of a Canadian NI-43-101 compliant Pre-Feasibility Study (PFS)

Once the PFS is completed, Revelo will have 120 days to decide whether to continue as a partner in the JVC at a 20% level, with standard dilution clauses, or to convert its interest into a 1.0% net smelter return (NSR) royalty in exchange for delivering its 20% interest in the JVC to SQM

The JVC will be responsible for underlying royalties covering portions of both properties

SQM has the right to exit the agreement at any time without further obligation for payment or expenditure

The start date to the Exploration Option Agreement is subject to the successful conclusion of a surface rights access agreement with the single private owner of the surface rights at both Calvario and Mirador. Negotiations with the owner are at an advanced stage. The costs of such an access agreement will be met by SQM and included in the expenditure commitments indicated above.

Tim Beale, CEO and President of Revelo commented, "We are very pleased to have SQM, a major mining company with significant interests in Chile, as a partner at our Calvario and Mirador projects. This is Revelo's third currently active JV partner, with 4 projects currently subject to third party expenditures in northern Chile. We view both Calvario and Mirador as priority targets due to their overall geological characteristics, the widespread and intense nature of the hydrothermal alteration zones, and presence of important geochemical anomalies of interest. We are excited to see this exploration program develop."

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Posted By : Rabi Wangkhem on Tue, 16 Apr 2019
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