The Corisur epithermal claims, which include the Tacora and Andamarca concessions, are located approximately 52 km from Tacna with road access and high-voltage power lines and water nearby. The Corisur claims are contiguous to the Huilacollo property. Tier One’s technical team believes the epithermal system on the Tacora licenses is the continuation of the same oxide gold epithermal system observed on the Huilacollo licenses. The Andamarca license provides Tier One with a strategic land position that is considered important from an infrastructure standpoint if future mining were to occur.
The Corisur claims have excellent infrastructure with access by road, nearby high voltage power lines and water.
The Tacora and Andamarca concessions were acquired in two seperate transactions with private Peruvian owners. Under the terms of the Tacora acquisition agreement, the Company paid US $200,000 on signing of the Public Deed transferring the concessions in favor of Corisur Peru SAC. The Tacora concessions are subject to a 0.5% NSR, 50% of which is buyable for US $0.5 million. Under the terms of the Andamarca acquisition agreement, the Company paid US $450,000 on signing of the Public Deed transferring the concession in favor of Corisur Peru SAC. The Andamarca concession is subject to 1.5% NSR, 50% of which is buyable for US $2.5 million.
Tier One holds its interests in Peru through Corisur Peru SAC, which controls (among other) certain licenses (including the Huilacollo project) that are located within a special legal zone which runs 50km back from the Peruvian border. As a non-Peruvian company, Tier One’s right to ultimately acquire title over the shares issued by Corisur Peru SAC and to own and/or exploit these licenses requires approval from the Peruvian government. While Tier One is in the process of submitting its applications with respect such the approval and does not currently foresee any legal reason why it would be denied the approval, some risk of denial or delay should be assumed to exist.