Revelo Resources (TSXV: RVL) and Sociedad Química y Minera de Chile (NYSE: SQM) signed this week an exploration option agreement under which the latter can acquire up to an 80% interest in Calvario and Mirador, two of Revelo's copper-focused projects in northern Chile.
According to Revelo, both Calvario and Mirador display widespread geological characteristics indicative of the upper parts of possible porphyry copper systems. Calvario has been the subject of minor historic drill testing, while Mirador is an undrilled prospect.
Under the agreement, SQM has a 5-year option to explore and earn an 80% interest in the contiguous properties. To make use of that option, the company has to make cash payments to Revelo totaling up to $5.22 million over the 5 years and incur in exploration expenditures totaling up to $13 million.
Calvario encompasses about 6,900 Ha of 100% owned tenement, which is contiguous with the Mirador tenement directly to the south.
Once the option is completed, the idea is for the buyer and the seller to establish a joint-venture company with SQM owning 80% and Revelo owning 20%.
The entire deal, however, is still pending the closure of negotiations with the single private owner of the surface rights at Calvario and Mirador. In a press release, Revelo said that such negotiations are at an advanced stage.
The Canadian miner also explained that both projects lie along the southern extensions of the Paleocene magmatic belt of northern Chile, which hosts some of the most important copper and precious metals deposits in the country, such as BHP's Cerro Colorado and Spence projects; KGHM-Sumitomo's Sierra Gorda; Teck-Goldcorp's Nueva Unión's Relincho deposit; Yamana Gold's El Peñón, and Austral Gold's Guanaco.
"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," Tim Beale, CEO and President of Revelo, said in the media statement.