LONDON (Alliance News) - Rose Petroleum PLC Thursday said its Minerales VANE SA de CV subsidiary has entered into a joint venture agreement with Minera Camargo SA de CV in connection with the latter's concessions located northeast of El Rosario in southern Sinaloa, Mexico.
The agreement involves the Tango, Tango 2, Tango 3 and Tango 5 concessions which host two rocks, one containing copper, the other molybdenum, as well as several historic high-grade gold and silver mines associated with the porphyries, it said.
The agreement is to further explore the two copper and molybdenum bearing porphyries and separately seek to develop production on the high-grade gold and silver to provide ore to the Rose's San Dieguito de Arriba mill in Acaponeta, Nayarit, it said.
The joint venture will split profits equally on production from the silver and gold. Rose's subsidiary is the operator and separately holds the option to earn 75% ownership on the copper and molybdenum by investing USD5 million in work expenditures over five years.
Group CEO Matthew Idiens said: "The agreement on the Tango property provides an excellent opportunity for the company to move directly to the drilling stage on a major porphyry system. The initial drill programme is expected to cost in the region of USD500,000 to USD1 million to complete and will give us a clear indication on whether we proceed further with the option."
Rose Petroleum's shares were down 2.4% to 3.32 pence per share Thursday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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