Corex Gold has finalized an agreement with Vale whereby Vale can acquire up to a 65% interest in Corex’s Santana gold project in Sonora, Mexico by making work expenditures of $16 million over a period of six years. Exploration work on the 8,500-ha Santana property is targeting a multi-million-oz copper-gold porphyry deposit.

Vale has a first option to acquire up to a 51% interest in the Santana project by making aggregate minimal exploration expenditures of $8 million over an initial three-year term. Vale is required to make an initial cash payment of $100,000 to be credited toward the year-one expenditures and at its option may make a further cash payment of $100,000 to be credited towards expenditures in year two.

Vale has a second option to earn an additional 9% by spending an additional $4 million during year four and the first six months of year five and a third option to earn a further 5% by spending another $4 million during the second half of year five and all of year six.