Peruvian Metals, a Canadian exploration and mineral processing company, has agreed to sell its 100% interest in the Maria Norte gold-silver-zinc-lead project in Peru, a non-core asset, to Rio Silver, a Canadian resource company, for shares and cash.

Rio Silver will acquire Peruvian Metals’ Peruvian subsidiary, which holds the Maria Norte concessions.

This strategic move allows Peruvian Metals to concentrate on its gold ventures in northern Peru while indirectly gaining from Maria Norte’s development.

Under the terms of the transaction, Rio Silver will acquire Peruvian Metals’ Peruvian subsidiary, which holds the Maria Norte concessions.

The agreement includes a cash payment of C$15,000 ($10,486.3) and the issuance of 15 million Rio Silver common shares, along with five million warrants.

Additional cash payments amounting to $250,000 are to be made over five years and a 1.5% net smelter royalty will be paid on mineral concentrate sales.

Peruvian Metals CEO and chairman Jeffrey Reeder said: “Peruvian Metals will have a significant interest in Rio Silver and will indirectly benefit from any exploration or development success. This disposition is another example of the company’s ability to identify and acquire prospective mineral projects and then bring third party capital to develop the projects.

“More importantly, agreements such as this disposition of Maria Norte will further focus the company’s direction into the Peruvian gold space while gaining upside on its new shareholdings in Rio Silver.”

The Maria Norte property in the Huachocolpa Mining District comprises four concessions over 384ha.

It hosts a mineralised corridor with multiple high-grade veins, observed over a 600m width. The veins vary in length from 40m to 400m and in width from 0.20m to 4m.

Maria Norte holds strong exploration potential due to its location near producing mines in the region.

Historically, the district has been prominent for polymetallic mining, with the Recuperada mine and mill, as well as the Concentrator de Minerales Huachocolpa plant, being key facilities in the area.

Although operations ceased in 2014, recent investments have revitalised the district’s mining and milling activities, with expansions planned to increase the combined capacity of the two mills to more than 3,000 tonnes per day.

In October 2024, Peruvian Metals acquired the remaining 50% interest in the Palta Dorada gold-silver-copper property in northern Peru from Rio Silver.