LONDON (Alliance News) - Hunter Resources PLC Wednesday said it has completed negotiations of the improved terms to the joint venture agreement with the current owner of the Pampamali project in Peru, which has led to Hunter acquiring the right to earn a 51% stake in its first project for a lower price and sooner than it had originally anticipated.
Hunter shares leapt 76.3% to 0.617 pence per share on Wednesday morning.
Under the revised terms, Hunter now has the right to acquire a 51% stake in the project within 12 months of the environmental impact assessment being completed at the project for USD90,000, less than the USD115,000 that was originally reported in December.
In addition, as part of the improved terms Hunter has agreed to assume certain 2014 tenement costs totalling USD34,000, which was previously to be paid by the current owner, which has not been named.
Overall, the company said it has saved a total of USD601,000 by negotiating the new terms compared to the original amounts that were outlined in June 2014, it said.
"The finalisation of the revised joint venture agreement with the owner of Pampamali is an important step for the company and we are delighted to have improved the terms on which we can move to a controlling interest," said Executive Chairman Simon Hunt.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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