Commissioners Gold makes maiden overseas drive into Peru
THE BOURSE WHISPERER: New South Wales-based gold explorer, Commissioners Gold, is making its first international expansion of its mineral exploration activities – into Peru’s resources rich provinces.
Commissioners Gold announced today that it had signed a joint venture agreement with Lima–based unlisted resource junior Australia Gold Corporation (AGC) to establish a 50:50 project acquisition joint venture to identify and acquire resource projects in Peru.
The initial Joint Venture commences today and runs for six months, with Australia Gold managing the due diligence process across potential Peruvian mineral exploration projects from that company’s existing headquarters in the Peruvian capital of Lima.
The international expansion will run in parallel with, and not at the expense of, Commissioners Gold’s existing Australian exploration campaigns focused on proving up at least three priority gold projects in the highly prospective Lachlan Fold Belt region of eastern New South Wales.
“The objective of our joint venture with Australia Gold is to acquire resources projects in Peru with short to near-term production and cash flow potential.”
“The JV has been tasked with initially targeting areas of high grade mineralisation currently being mined by small syndicates, and to then acquire majority equity in those areas through modest cash investment,” Commissioners Gold’s executive chairman, Chris Battye said in the company’s announcement to the Australian Securities Exchange.
Jason Needham, Commissioners Gold’s Exploration Manager, said Peru had been selected for the Company’s maiden exploration push overseas as that country’s mineral potential was renowned globally, and currently ranked second in Copper production in the world, Third in Silver-Zinc-Tin production, and was the world’s sixth largest gold producer.
“Strategically for our expansion, we are attracted to the first mover advantages created by legislative changes passed only this year which significantly strengthen and reform the country’s mining industry through recognising legitimate mining and outlawing illegal mining,” Needham said.
“With much of the ground held by small miners and syndicates needing to now formalise under these legislative changes, highly productive ground is available for investment and acquisition and that is why we plan to establish and grow that presence on the ground via the joint venture.
Mr Needham said Peru also boasted a large professional workforce experienced in mining; its labour, energy and equipment costs were relatively low by world standards and the national government favored equitable foreign investment in the sector.