Libero Copper (TSXV: LBC) is walking away from one of its projects this morning over complaints related to the option agreement.
Libero has walked from the Esperanza project in Argentina, which was focused on defining a porphyry copper-gold system following a drill hole in 2018 that intersected 387 metres of 0.57% copper and 0.27 g/t gold from surface. In terminating the option agreement, the company commented on the escalating obligations for the project, and the struggle of obtaining exploration permits, the latter of which it blamed on previous operators.
“We were assured by Latin Metals when entering into the Esperanza option agreement in January 2021 that Latin Metals would secure permits to allow us to commence drilling quickly. However, the previous exploration permit, held by Latin Metals, had been suspended by a resolution of the Ministry of Mines in San Juan, which made recommencing drilling much more difficult than expected,” commented Ian Harris, CEO of Libero.
He added that the terms of the option agreement, which is now in year three, were based upon more drilling being conducted in the initial years than was able to occur, which makes continuing with the arrangement financially unfeasible.
Under the terms of the original option agreement signed between Libero Copper and Latin Metals in January 2021, Libero could acquire up to a 70% stake in Esperanza in exchange for cash payments of US$2.4 million and exploration expenses of US$2.0 million.
Libero moving forward has indicated it will instead focus on its wholly owned Mocoa porphyry copper-molybdenum deposit in Colombia.
Libero Copper last traded at $0.02 on the TSX Venture.
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