(MENAFN - ProactiveInvestors - Australia) Argentina Mining (ASX: AVK) will now focus its resources towards evaluating its flagship Cerro Blanco Project in Argentina after assigning its interest in the Tres Amigos Project to New Destiny Mining (TSXV: NED).
Other projects that it will continue to work on include the more advanced San Francisco, Amiches and regional exploration projects, all of which are on the western flanks of the Calingasta Valley.
Tres Amigos is the Company's only project which lies on the eastern side of the valley, in the Pre-Cordillera.
Under the Option Agreement, New Destiny has agreed to:
- Pay US50,000 (A48,658) and issue 750,000 shares to Argentina Mining within 10 days of the acceptance date;
- Assume responsibility for paying the remaining US150,000 in instalment payments to the vendor of Tres Amigos;
- Carry out at least US480,000 of exploration within 12 months; and
- Maintain the property and agreement with the vendor in good standing during the 12 month option period.
Argentina Mining will also retain a 1.5% Net Smelter Royalty.
Tres Amigos is located 12 kilometres northeast of the township of Barreal, in the Calingasta Valley in San Juan Province.