Peruvian Metals Corp. acquired a 50% interest in San Maurizo Mines Inc., which the company believes will pave the way for both entities to collectively develop the Mercedes gold-silver-lead-zinc-copper property in central Peru.
Upon completion of the transaction, San Maurizo will hold an exclusive 100% interest in Mercedes via its Peruvian subsidiary, Basic Minerals SAC. Peruvian Metals is set to acquire a 50% stake in San Maurizo by purchasing half of the outstanding shares currently owned by its sole shareholder, Hudson Heartland Ltd. The project is subject to a 20% Net Profit Interest (NPI), which will be eliminated once $5 million has been paid to the NPI holder. Afterwards, a 1.5% Net Smelter Royalty (NSR) will be paid to the NPI holder. San Maurizo retains the right to buyout the NSR for $1.5 million.
The Mercedes property has a history of extensive underground workings, featuring numerous horizontal drifts and vertical raises totaling more than 1,000 meters. Dating back to the early 1980s, previous operators concentrated on three primary structures known as Victor 1, Victor 2, and Kelly veins.
Initial exploration and development phase will focus on creating a 200-m drift crosscut to access the Victor and Kelly veins, positioned 50 m below the historical workings.
“We are thrilled to embark on a collaborative journey with Hudson to explore and develop the promising Mercedes property,” said Jeffrey Reeder, CEO, Peruvian Metals. “This site boasts numerous high-grade veins rich in precious and base metals, presenting excellent opportunities for exploration and bulk sampling. The permitting process for [Mercedes] is near completion, ensuring a smooth transition into both the exploration and development phase.”
