Excellent news from the Focus Ventures (FCV.V) camp as the company was able to sign a deal with Daewoo International whereby the latter can earn a 65% stake in the Aurora copper-molybdenum project in Peru. Aurora is an advanced-stage exploration project and is being permitted for a major drill program. The mineralized surface area is roughly 72 hectares and a previous 3,900 meter drill program has found some very interesting intercepts such as 190 meters of 0.57% copper and 0.008% Molybdenum as well as 142 meters at 0.50% copper.
As Focus Ventures is fully focusing on its Bayovar 12 phosphate project in Western Peru, it’s good to see the company was able to secure a strong joint venture partner (keep in mind Daewoo International is a subsidiary of POSCO (PKX) ). As per the agreement, Daewoo will acquire 49% of the subsidiary holding the Aurora project for $3M which will be used towards funding a 10,000 meter drill program on the property. Thereafter, Daewoo has the option to increase its stake in the project by making more payments into the subsidiary, but the amount of these payments is unknown at this point in time.
Disclosure: The author holds a long position in Focus Ventures. Please see our disclaimer for current positions.