Palamina to buy Aurania’s Peru unit to boost copper assets

Move will give Palamina access to strategic copper and silver projects in the country, including the Vicus Pluma copper project.

Canada’s Palamina Corp. (TSX-V: PA)(OTCQB: PLMNF) is buying Aurania Resources’ (TSX-V: ARU) subsidiary in Peru, Sociedad Minera, which will grant it access to strategic copper and silver projects in the country, including the Vicus Pluma copper project.

The Toronto-based gold explorer will hand fellow Canadian company Aurania 350,000 common shares and a 1% net smelter return (NSR) royalty. Palamina said it has the option to buy back half of the NSR for Cdn$1 million.

The acquisition of Vicus would give Palamina 100% ownership of the Pluma sediment-hosted copper-silver project, which covers 9,800 hectares north and it is contiguous to Hannan Metals’s San Martin copper-silver project, the company said.

“Securing the Pluma copper-silver project will provide Palamina shareholders exposure to the San Martin district where a third drill discovery program is planned by Hannan seeking to confirm a new world-class copper-silver district in Peru.” The company’s president, Andrew Thomson, said in the statement.

Palamina is a gold explorer with several projects in the Puno Orogenic Gold Belt in south-eastern Peru.

Aurania focuses on precious metals and copper in South America. Its flagship asset, The Lost Cities – Cutucu project, is located in the Jurassic Metallogenic Belt in the eastern foothills of the Andes Mountains in southeastern Ecuador.