- Bastion Minerals (BMO) enters a binding framework agreement with Sociedad Minera del Norte (SMDN) to acquire the San Juan Gold Project in Chile
- Mining at the project stopped in 1954 with no modern exploration undertaken since then
- Total consideration for the acquisition is US$1.5 million (A$2.06 million) with a purchase option agreement to be signed within 45 days following due diligence
- Once the option price is recovered by Bastion, a two per cent net smelter return (NSR) is payable to SMDN
- Shares in Bastion ended the day up 23.5 per cent to trade at 21 cents
Bastion Minerals (BMO) has entered a binding framework agreement with Sociedad Minera del Norte (SMDN) to acquire the San Juan Gold Project.
The 11.5 square kilometre project is made up of 18 mining licences and is located in the Capote Mining District in the Atacama Region, Chile.
Mining stopped in 1954 with no modern exploration undertaken since then.
The San Juan Gold vein is believed to have produced roughly 500,000 ounces at 40 grams of gold per tonne (g/t) and processed a total of 1.7 million ounces of gold at 52g/t gold.
This vein represents the largest high-grade gold-bearing vein system in the district with over 1.5 kilometres of strike and mined to a depth of roughly 350 metres.
Total consideration for the acquisition is US$1.5 million (A$2.06 million) with a purchase option agreement to be signed within 45 days following the completion of due diligence.
Upon execution of an option agreement, US$175,000 (A$240,937) is payable with US$300,000 (A$413,035) payable within 12 months of the option date.
The remaining US$1 million (A$1.37 million) is payable within 24 months of the option date.
Once the option price is recovered by Bastion, a two per cent net smelter return (NSR) is payable to SMDN.
This acquisition has the potential to transform Bastion into a gold producer and it plans to fast-track drilling to commence next month.
Executive Director Ross Landles commented on the acquisition.
“This acquisition represents a rare opportunity to consolidate and control a historically significant high-grade gold system covering approximately 30 square kilometres,” Mr Landles said.
“The potential of this new tenement package cannot be understated and represents execution of Bastion’s corporate strategy to identify, acquire and explore high-grade gold districts that have been locked-up for several decades and missed any modern exploration methods.”
Shares in Bastion were up 23.5 per cent on the market and were trading at 21 cents at market close.