Luminex Joins With BHP to Advance Concessions in Ecuador


A geologic map for the Tarqui deposit in Ecuador shows the discovery zone.
(Photo: Luminex Resources)
Luminex Resources has entered into a non-binding letter of intent with BHP for an earn-in and joint-venture agreement on Luminex’s Tarqui 1 & 2 mining concessions in southeast Ecuador. BHP will have the right to earn up to a 70% ownership interest in the property by investing up to $75 million in exploration expenditures and making up to $7 million in cash payments to Luminex. Luminex has agreed to work exclusively with BHP to negotiate and complete a binding agreement.

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.

As featured in Womp 2019 Vol 04 - www.womp-int.com

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