Luminex Resources Corp. has signed a formal earn-in and joint venture agreement with a wholly owned subsidiary of BHP Group plc for Luminex’s Tarqui and Tarqui 2 mining concessions in Ecuador. BHP has the right to earn a 51% ownership interest in the joint venture, which will hold the property if it invests an aggregate amount of $25 million in exploration expenditures and makes $2.4 million of cash payments to Luminex over a four-year period.
BHP will have the right to earn an additional 9% ownership interest in the joint venture by funding an additional $10 million of expenditures and making an additional $4.6 million of cash payments over a further two-year period, increasing BHP’s aggregate ownership to 60%. BHP will have the right to earn a further 10% ownership interest by funding an additional US$40 million of expenditures, taking BHP’s ownership to 70%. Luminex would then hold a 30% interest in the property.
Under the terms of the agreement, BHP will pay $100,000 to Luminex upon signing and $200,000 due upon completion of the transfer. BHP will also reimburse $200,000 worth of expenses from the signing of letter of intent on May 31. Luminex will also be reimbursed for the approved June 2019 expenses related to the property.
BHP will act as manager and operator of the joint venture company and work is under way to continue exploration activities on site.