(RTTNews) - Exploration and development company Mariana Resources Ltd (MARL.L: News ) said Monday that it secured an option to acquire the remaining 30% interest in the Santa Cruz Joint Venture from Iamgold Corp. (IAG, IMG.TO). The option is for an initial consideration of 1 million Mariana Resources shares that will be issued to Iamgold.

Mariana Resources needs to complete a minimum of 1,500 m of drilling on the Sierra Blanca and Canadon Largo projects, which the Santa Cruz JV comprises. The option can then be exercised within the two year period by paying Iamgold US$500,000 and the equivalent of US$500,000 in Mariana Resources shares, based on the 15 days volume weighted average price on AIM when the option is exercised. Iamgold will be granted a 1.5% royalty on net smelter returns from any commercial mineral production from the two projects.

Mariana originally earned a 70% interest in the Santa Cruz JV in January by conducting a US$2 million exploration program.
The company said today that it plans to test for concealed silver-gold targets along the 4 km long Veta Chala - Lucila trend in the second quarter of 2010 to further assess the economic potential of the project.

MARL.L is currently trading at $19.22, down $0.28 or 1.44%, on 171,724 shares.

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by RTT Staff Writer

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