Asara Resources (ASX: AS1) announced it has received a US$100,000 (A$153,725) cash payment following the resolution of litigation related to its Loreto Copper Project in Northern Chile. This payment is part of a larger US$17.6 million Option and Joint Venture Agreement with Teck Resources Chile Limitada (Teck Chile). The agreement grants Teck Chile options to earn up to a 75% interest in Loreto through staged cash payments totaling US$600,000 and exploration expenditures of US$17 million.
Under the terms, Teck Chile can acquire an initial 55% interest (First Option) by spending US$5 million on exploration and making US$600,000 in cash payments to Asara. The remaining cash payments are contingent upon the Permit Date, with subsequent payments due on the first, second, third, and fourth anniversaries. The total investment for the First Option will be $5 million for expenditure and $600,000 cash payments. If Teck Chile exercises the First Option, it has a further option to acquire an additional 20% interest (Second Option) by investing an additional US$12 million in exploration over the following four years.
Asara also announced the successful conclusion of separate legal proceedings, requiring the sale of 25.26% of its interest in the Loreto Project to Costa Rica Dos SpA for approximately A$87,122. The payment will be sourced from future profits generated under the agreement with Teck Chile, meaning Asara is not required to allocate a portion of the recent $100,000 payment to Costa Rica Dos.
Asara Resources is focused on its Kada Gold Project in Guinea and seeking to divest its Paguanta Copper and Silver-Lead-Zinc Project in Chile. The Loreto Copper Project remains a key asset through its joint venture with Teck, offering significant potential for future growth and value creation.
