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(Kitco News) – Mundoro Capital (TSXV:MUN) announced Thursday the establishment of a generative alliance with Vale Exploration Canada, a subsidiary of Vale S.A., focused on generation of new projects with high potential to host porphyry copper and related metals deposits within Arizona and New Mexico, United states.
In addition to the generative alliance, Mundoro and Vale have entered into a definitive option agreement in December 2021 for a property focused on copper porphyry exploration in Arizona.
Under the terms of the generative alliance, which has an initial term of two years, Vale will annually sole-fund the generative work performed by Mundoro within the area of interest that consists of the states of Arizona and New Mexico.
Mundoro said it will be the operator of the exploration activities while Vale sole funds the work program and budget in order to identify projects suitable for designation as designated projects.
Each designated project will be covered by a separate option agreement pursuant to which Vale can acquire 100% of the designated project through sole-funding exploration expenditures during the option period, being up to US$1,500,000 over two years or US$2,500,000 over three years; make property payments during the option period of up to US$500,000 over the three years; upon completion of the option exercise, make cash payments to Mundoro which combined equate to US$9,000,000 over four milestones starting at an initial resources statement for the designated project and ending with receipt of permits and licenses necessary to commence construction.
In addition, as part of the option exercise, Vale will grant Mundoro a 2% NSR on the designated project, which includes annual advance royalty payments of US$200,000 through to commercial production.
Mundoro is a Canadian listed royalty generator company with a portfolio of projects focused on base and precious metals that generate royalties and near-term mineral revenue.
Mundoro has generated a portfolio of mineral projects primarily focused on copper and gold in two mineral belts: Western Tethyan belt in eastern Europe and Laramide belt in the southwest USA.
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