Luminex Joins With BHP to Advance Concessions in Ecuador
The letter of intent envisages a threestage earn-in process, whereby BHP will have the right to earn a 51% interest on completion of $25 million of exploration expenditures and $2.4 million in cash payments to Luminex within the fourth anniversary of the signing of the joint-venture agreement; earn an additional 9% interest on completion of cumulative $35 million of exploration expenditures and cumulative $7 million in cash payments to Luminex within the sixth anniversary of the signing of the joint-venture agreement; and earn an additional 10% interest on completion of cumulative $75 million of exploration expenditures.
BHP will assume management of the joint-venture company and the exploration program and will have the right to accelerate the exercise of the earn-in by completing all the exploration expenditures and any outstanding cash payments to Luminex in a period shorter than the earn-in term. Assuming completion of the third earn-in, Luminex will retain a 30% interest in the property and will be responsible for funding its 30% pro rata share of any capital required.
“Luminex is excited to advance Tarqui with an organization like BHP, with the opportunity and commitment to supply future global copper demand and a strong focus on responsible development in Ecuador,” Luminex CEO Marshall Koval. “Tarqui is an exciting copper prospect that BHP and Luminex will pursue over the coming years.”
Luminex is a precious and base metals exploration and development company headquartered in Vancouver, Canada, and focused on gold and copper projects in Ecuador. The company holds a large and highly prospective land package in Ecuador consisting of approximately 100,000 ha, including the Orquideas and Pegasus projects, which it is co-developing with First Quantum Minerals and Anglo American Plc, respectively.