Aegis Resources Ltd. Announces Strategic Option Agreements for the El Zanjon and Venidero Projects in Santa Cruz, Argentina
Executive Summary
- Aegis Resources Ltd. signed two option agreements with Targa Exploration Corp. granting Targa the right to earn up to an 80% interest in the El Zanjon and Venidero gold‑silver projects in Santa Cruz Province, Argentina.
- Under each agreement Aegis will retain a minimum 20% carried interest, mirroring its prior Cobrasco deal, with potential dilution down to a 2% NSR after feasibility completion.
- The agreements require Targa to fund exploration (≈23,000 m drilling) and make cash/share payments totaling $512,500 per project, plus additional expenditures if feasibility studies are delayed.
Key Details
- Option Structure:
- Targa may earn an 80% interest in each project by completing a feasibility study for a ≥2 million‑ounce AuEq resource within 12 years.
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Aegis retains a minimum 20% carried interest; joint venture formed on an 80/20 basis after exercise, with a dilution clause to a 2% NSR.
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Financial Commitments:
- Cash and share payments aggregating $512,500 per project (El Zanjon and Venidero).
- If feasibility is not completed by the 9th–12th anniversary, additional cash payments are triggered (specific schedule outlined in release).
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Failure to complete by the 8th or 10th anniversary obligates Targa to incur $5 million of additional project expenditures before the next milestone.
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Exploration Requirements:
- Minimum drilling of 23,000 m per project as part of the option conditions.
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An alternative “51% Option” is available if Targa drills 50,000 m and makes the required payments prior to completing the 80% option; exercising this reduces the ultimate joint‑venture split to 50/50 with Aegis holding a casting vote.
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Existing Royalties & Repurchase Options:
- Venidero: existing 0.5% NSR, repurchasable for US$1 million.
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El Zanjon: existing 2% NSR, half (1%) repurchasable for US$1 million.
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Project Overviews:
- El Zanjon: 34,521 ha; located 30 km south of AngloGold Ashanti’s Cerro Vanguardia mine.
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Venidero: 7,996 ha; situated 60 km south of Newmont’s Cerro Negro mine; surface veins have returned up to 4.45 g/t Au in chip samples and trace a 2.5 km vein system.
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Related Updates:
- Aegis notes that exploration has resumed on the Cobrasco project (20% free‑carried interest) and that its Georgetown Project interest in Queensland, Australia has been reduced to 17%, with an expected further reduction to a 2% NSR.
Notable Quotes
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Alejandro Adams, CEO, Aegis Resources Ltd.:
“These agreements strategically position Aegis with the potential to mirror our successful Cobrasco deal where we retain a 20% interest to completion of a feasibility study… ensure our shareholders participate fully in the exploration upside while minimizing future dilution.”
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Alejandro Adams, CEO (continued):
“We are pleased to report that exploration has resumed on that discovery [Cobrasco].”