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First Quantum exits Luminex option

First Quantum Minerals has told Luminex Resources (TSXV: LR) it will terminate its earn-in to the Orquideas copper-molybdenum project in Ecuador after the first five drill holes failed to produce significant mineralised intercepts.
First Quantum exits Luminex option First Quantum exits Luminex option First Quantum exits Luminex option First Quantum exits Luminex option First Quantum exits Luminex option

First Quantum is considering whether to continue with its second Luminex option at Cascas

Staff reporter

First Quantum had two earn-in options with Luminex in Ecuador and said it was assessing whether to continue its option over the Cascas concessions.

"For the time being, First Quantum's earn-in option on the company's Cascas concessions will remain in place, as will the total US$7 million cash payment schedule over the five-year earn-in period," Luminex said.

The junior, which spun out of Lumina Gold last year, has also struck earn-in and joint venture agreements with majors BHP and Anglo American over some of its other concessions in Ecuador.

BHP last month signed a binding agreement over Luminex's Tarqui and Tarqui 2 concessions, which gives the major the right to earn up to 70% by spending $75 million on exploration and paying $7 million to Luminex.

Anglo can earn up to 70% of the Pegasus and Luz concessions by investing $50 million, paying $7.3 million and sole funding work up to a decision to construct a mine, under a deal signed in September.

Luminex raised C$7 million (US$5.3 million) last month at 62c per share to fund drilling at its flagship Condor copper-gold project, exploration at its non-optioned concessions and for general corporate purposes.

Luminex shares, which have gained 42% so far this year, lost 9% yesterday to close at 91c, capitalising it about $48 million (US$36 million).