Under the agreement, Gold Fields has the right to set up a technical advisory panel to review and provide input on Chakana's exploration programme, a pre-emptive right to participate in any future proposed equity offering to maintain its pro-rata interest, and the right to increase its equity position to match that of another mining company in a future equity financing should that occur.

"Gold Fields' investment validates the potential of the Soledad project, and their technical and operational expertise in Peru will help us unlock that potential," said Chakana president and CEO David Kelley in a statement.

The net proceeds will be used to advance exploration and development of the Soledad copper-gold-silver project in central Peru, including a more aggressive drilling programme to test multiple targets and produce an initial resource on several breccia pipes.

Chakana has drilled only a handful of breccia pipes it has identified at Soledad.

Shares in Chakana Copper (TSXV:PERU) opened almost 7% higher today at 39c, valuing the company at $30 million. Its share price is flat so far this year.