Avrupa Minerals Ltd. (TSXV:AVU,FWB:8AM) signed an Exploration Alliance Agreement with Callinan Royalties Corporation to fund exploration for new properties in Portugal, and to advance early stage exploration work on its existing projects.
As quoted in the press release:
Avrupa and Callinan signed the three-year Agreement which calls for Callinan to fund $150,000 of generative exploration in Spain and Portugal during the first year of the Agreement and, at Callinan’s option, to fund up to $100,000 in each of the two subsequent years. In return for such funding, Avrupa will grant Callinan the option to receive a 0.5% NSR royalty on any new projects acquired as a result of the generative exploration work, or, if Callinan funds an additional $150,000 in further exploration on any of the new projects, an option to receive a 1.5% NSR royalty on such projects. If Avrupa determines that further value can be generated for the new project after spending the additional $150,000, Callinan has the option to contribute subsequent funding with Avrupa on a joint 50/50 basis, with Callinan’s NSR and interest in the new project unchanged.
Callinan also has the option to fund additional exploration on Avrupa’s existing mineral properties, if proposed by Avrupa, and would earn a 1.5% NSR royalty in return for funding $150,000 in exploration on those projects.
Both Avrupa and Callinan expect that the results of this Agreement will generate additional mineral properties for Avrupa, advance those mineral properties to attract potential joint venture partners, and allow Callinan to acquire potentially significant royalties in a new mining jurisdiction. Avrupa may also propose additional new prospect areas outside of Portugal, and Callinan will have the option to fund the exploration in those areas in return for the same royalty structure.
Avrupa Minerals Ltd. President and CEO, Paul Kuhn, said:
This Agreement is a great way for Avrupa to generate new projects and advance them. We are pleased to have a new partner in Callinan and look forward to working closely with their geological team.