Cadillac Ventures (CVE:CDC) said Monday it plans to sell a 90 percent stake in its Spanish joint venture for $2.5 million to focus on its Thierry project in northwest Ontario.
The company entered into a letter agreement with Iberian Minerals (CVE:IZN) to unload the venture.
Cadillac, which owns the past producing Thierry Mine, purchased its 90 percent interest in the venture under an agreement with Minas de Aguas Tenidas in December 2008.
The deal with Minas, a unit of Iberian Minerals Corp, included 14 properties totalling about 232 square kilometres within the prolific Iberian Pyrite Belt of southern Spain.
"At this time Cadillac is selling its interest in the Spanish Joint Venture in order to focus the company's resources on the Thierry Project in northwest Ontario," chief executive Norman Brewster said Monday.
Planning at the copper-nickel project is now underway to start definition drilling and new exploration on the 5,422-hectare property once site conditions permit, Brewster added.
Completion of the Spanish sale is subject to a definitive agreement, the completion of due diligence and TSX Venture Exchange approval.
The Thierry property, near Pickle Lake, Ontario, hosts two NI 43-101 compliant resources: the Thierry mine and K1-1.
The Thierry mine has a current resource estimate of 8.8 million tonnes in the measured and indicated categories with a grade of 1.66% copper, 0.19% nickel, 4 grams per tonne (g/t) silver, 0.05 g/t gold, 0.04 g/t platinum and 0.13 g/t palladium.
In the inferred category, the resource stands at 14.9 million tonnes with a grade of 1.64% copper, 0.16% nickel, 6.4 g/t of silver, 0.10 g/t gold, 0.07 g/t platinum, and 0.21 g/t palladium.
The deposit remains open at depth and to the west, the company said.
Meanwhile, the K1-1 is an open-pit low grade deposit that rests three kilometres from the Thierry mine. It has an inferred mineral resource of 53.6 million tonnes with a grade of 0.38% copper, 0.10% nickel, 1.83 g/t silver, 0.03 g/t gold, 0.05 g/t platinum, and 0.14 g/t palladium.
Iberian is an affiliated entity of Trafigura Beheer B.V., which, indirectly owns or controls, approximately 25 percent of Cadillac's outstanding shares.