On July 5, the UK-based mineral development company ECR Minerals plc (ECR) announced that it has secured an exclusive option to acquire an ownership interest of up to 80 percent in the Unchimé iron ore project in Salta Province, Argentina. The acquisition is subject to due diligence.
ECR can acquire an initial 70 percent interest in Unchimé for staged cash payments totaling US$2 million and a further 10 percent interest for US$10 million payable in either cash or shares. An additional payment is due on estimation of a JORC/NI43-101 reserve exceeding 30 million mt.
Of these payments, US$200,000 has been paid as an option fee, US$1.3 million is due 60 days from the date on which permission for the initial drilling program is granted by the Argentine authorities, and a further US$500,000 is due not more than nine months from the date of the US$1.3 million payment.
Due diligence has started and will include metallurgical test work and a limited drilling program. ECR may continue with its due diligence until the time at which the US$1.3 million payment is made. Prior to that time, ECR is under no obligation to proceed with the Unchimé acquisition.