Mirasol Resources (MRZ.V) has announced it has signed an agreement with Yamana Gold (YRI.TO, NYSE:AUY) whereby the latter will have the option to earn a stake of up to 75% in Mirasol’s Gorbea belt in Chile.

As part of the 7 year earn-in program, Yamana Gold will have to spend $10M in exploration and making $2M in cash payments to Mirasol Resources in order to obtain an initial 51% stake in the project. There’s also a firm work commitment of $2M in the first year of the agreement, which includes 2,000 meter of drilling on the Atlas and Titan prospects.

This is a very interesting agreement, as Yamana Gold will carry Mirasol towards production (should a viable gold deposit be found), so it does look like Mirasol Resources got Yamana to sign a pretty sweet deal. This exploration program will ensure the continuous news flow for Mirasol as First Quantum Minerals (FM.TO, LON:FQM) has notified the company it’s dropping its option on the Rubi project.

> Click here to go to Mirasol’s website

Disclosure: The author holds no position in Mirasol or Yamana Gold. Please see our disclaimer for current positions.

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