Alien Metals Ltd (LON:UFO) has entered into an exclusivity agreement with Capstone Mining Corp (TSE:CS) in respect of the potential farm out of an interest in its Donovan 2 copper-gold project in Mexico.
The exclusivity provides for a 45-day period for Capstone to undertake due diligence. During the due diligence period the parties intend to enter into a definitive agreement, which will provide for a staged earn-in to the Donovan 2 Project, through a combination of carried expenditure and cash payments.
“The signing of the exclusivity agreement is the result of many months of discussions between the parties and fits with the Company’s stated strategy of unlocking value in its project portfolio,” Bill Brodie Good, chief executive of Alien Metals said in a statement.
“We have been impressed by the process undertaken to date and the commitment shown by Capstone Mining Corp and I am looking forward to working closely with them to promptly finalise outstanding due diligence matters and move to definitive agreements as soon as possible.”