Estrella Gold grants 3% NSR to Pucarana JV

Mar 11, 2014

ESTRELLA TO ENTER AGREEMENT WITH BUENAVENTURA REGARDING PUCARANA

Estrella Gold Corp.’s subsidiary, Gallant Minerals Peru Ltd. SA, has signed a memorandum of understanding with Compania de Minas Buenaventura SAA regarding the Pucarana property in Peru.

Under the arrangements, Buenaventura will be in charge of planning, implementing and developing for the exploitation of the Pucarana property and Buenaventura will grant a 3-per-cent net smelter returns royalty to the joint venture that will be then distributed as to 60 per cent to Alamos Gold Inc., 36 per cent to Estrella and 4 per cent to Gallant Minerals Ltd. The parties expect the final agreement to be fully executed by mid-May, 2014.

Estrella will have no further obligations with regard to the project and will simply hold the net 1.08-per-cent NSR. In the case that gold production comes from the property in the future, Estrella will receive 1.08 per cent of the revenues from any gold production from the Pucarana mineral claims, net of smelter costs.

John R. Wilson, president and chief executive officer of Estrella, commented, “We are excited to have Buenaventura advancing the Pucarana property on behalf of the joint venture.”

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