NEW YORK Urion Mining International BV, a wholly owned subsidiary of Trafigura Beheer BV, will provide funding to Salazar Resources Ltd. for its copper-zinc Curipamba project in Ecuador.
Urion will purchase 2.5 million shares in Salazar for Canadian $1 million ($983,900), the net proceeds of which will be used for working capital purposes.
After an engineering firm is hired to prepare a preliminary economic assessment on the El Domo property in Ecuador, Urion will offer an additional investment of up to C$1 million in a further private placement of common shares, Vancouver, British Columbia-based Salazar said March 26.
Once the engineering study is compete, likely in about eight months, Urion could provide additional financing through either an investment in the company or its wholly owned Ecuadorian subsidiary, Curimining SA. Urion can earn a maximum 35-percent interest in either Salazar or Curimining.
Salazar estimates Curpambas reserves consist of 292.6 million pounds of copper, 304.8 million pounds of zinc, 36.5 million pounds of lead and 498,000 ounces of gold, according to the companys website.
"We are very enthusiastic about this agreement, which marks a new stage in the life of the company that will be of great benefit for both companies as well as for our shareholders," Fredy Salazar, president and chief executive officer, said in a statement.