Peru figures larger in First Quantum plans as it buys a sizeable stake in junior explorer Zincore Metals
First Quantum Minerals (TSX: FM) now owns 19.9 -percent of junior explorer Zincore Metals (TSX: ZNC), after a private placement and share sale.
The two had previously announced a 19 million share private placement struck at C$0.20 a Zincore share.
But subsequent to the private placement, First Quantum bought that much and a little more in a private acquisition from Zincore's largest shareholder, Inversiones Pacasmayo.
First Quantum bought a further 23 million shares @ C$0.16 from Inversiones Pacasmayo the day after the private placement on May 10.
In Zincore, First Quantum increases its asset base in Peru where it is already developing the Haquira copper project.
Along with the private share purchase, First Quantum and Zincore also signed a memorandum of understanding that allows the former to earn up to 80-percent ownership of Zincore's Dolores copper-molybdenum porphyry.
Dolores, about 40 kilometres away from Haquira, is one of Zincore's early-stage projects in Peru. Its main assets are the Accha and Yanque deposits, which hold some 2.1 billion pounds zinc and lead.
In the near term, First Quantum gets 30 percent of the Dolores project if it spends C$3 million on exploration.