One of the very few Canadian based junior mining companies with any cash is Lowell Copper, which raised $11.4 million earlier this year, with a lead order coming from resource titan Lukas Lundin.
Lundin and others backed the junior for the intellectual property of its founder, J. David Lowell, an octogenarian explorationist who pioneered the hunt for porphyry copper deposits, and boasts 18 world class discoveries, which is probably a world record for mineral exploration.
Today Lowell Copper announced acquiring an option to earn up to 70% of Minaurum's (TSXV:MGG) Santa Marta VMS project in Oaxaca, Mexico.
According to Mr. Lowell in today's news release, "Santa Marta represents a very unique and rare opportunity to discover a world class VMS deposit with a relatively low amount of exploration expenditure."
Dr. James Franklin, an expert in VMS deposits noted, "Santa Marta appears to have all of the classic features of highly productive VMS systems, such as the semi-continuous deposit set at Flin Flon comprised of the Main Mine, Calinan and Triple 7. The stringer zone at Santa Marta has undergone slight oxidative weathering, and already has supported a small historic mining operation. The massive oxide zone appears to have been largely not explored; we saw evidence of only two historic drill holes, and there are no records of what these intersected."
In order for Lowell Copper to earn 60% of Santa Marta, they will need to spend $1 million in each of the years 2014, 2015 and 2016. To earn an additional 10%, Lowell will need to fund a pre-feasibility on the project by December 31, 2018. Additionally, Lowell will pay Minaurum $125,000 by January 31, 2014, and they will subscribe for $375,000 worth of Minaurum units in a concurrent financing.
A work plan for the Santa Marta project has not yet been announced.
Read: Lowell Copper and Minaurum Gold Enter into Option Agreement; Minaurum Announces Private Placement
Related: Mining's Greatest Explorer - Dave Lowell Interview | CEO.CA
[Disclosure note: Author holds a long position in Lowell Copper.]