Hannan Metal has US$2M annual budget from partner JOGMEC to advance its San Martin joint venture in Peru

Hannan Metals Limited (CVE:HAN) has announced that its joint venture partner, Japan Oil, Gas and Metals National Corporation (JOGMEC) has confirmed that it will provide a US$2 million budget from April 2021 to March 2022 to advance the San Martin project in north-eastern Peru.

In addition, the Vancouver-based company said that around 4,877,233 share purchase warrants have been exercised for gross proceeds of C$1.1 million. This will create working capital and fund exploration within 1,339 square kilometers of mining concessions that Hannan has applied for on its own in Peru, making it “a top ten in-country landholder,” said the company.

In a statement, Hannan CEO Michael Hudson said: “We are thankful for JOGMEC’s continued support and involvement at the San Martin JV sediment-hosted copper-silver project. We aim to have an active and successful year of continued high-grade copper and silver discoveries over large areas combined with social and environmental permitting advances.”

READ: Hannan Metals reports high-grade channel sample results from Tabalosos project at San Martin JOGMEC joint venture in Peru

“Equally, I would like to thank our shareholders for their support in bringing additional funds to the company, as we continue to advance our own exploration efforts to find large-scale mineral systems throughout Peru’s frontier areas,” he added.

Hannan said JOGMEC will provide the US$2 million for the 815 square kilometer San Martin JV project as part of “the second base earn-in period.” Under the agreement, JOGMEC has the option to earn up to a 75% beneficial interest in the project by spending up to US$35 million to deliver to the joint venture a feasibility study.

Hannan said the funds will advance the project in three different ways:

• At the project scale, work will identify the most prospective zones within the large land position by completing the regional scale stream sediment sampling, large-scale LiDAR airborne surveys to define geology, structure, outcrops and access in the densely forested terrain;
• At the prospect scale, targeted prospecting will then be undertaken in areas of interest with regional mapping along creeks and extensive soil sampling, with real-time portable XRF analysis. Trial electrical geophysics will be undertaken to determine if reduced copper-rich horizons can be identified in the subsurface;
• At the drill scale, the company plans to complete environmental permitting over three separate areas during the year to set the joint venture up with large scale and multiple drill targets for 2022.

Meanwhile, Hannan said “multiple field teams” continue to work undertaking reconnaissance prospecting and soil sampling at both the Tabalosos project at the San Martin JV project, and at Hannan’s 100% owned Previsto project.

Contact the author Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive

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