Celeste Copper Corp. (CVE:C) said Friday that it has extended an earn-in agreement to acquire an initial 25 percent equity interest in Cornish Minerals Limited.
Cornish Minerals, through a wholly owned subsidiary corporation, owns the property and assets known as the South Crofty Mine, located in the tin/copper district at Pool, near Redruth, Cornwall in England.
The company said that it has extended the expiry date of the earn-in agreement, signed in May 2011, to June 30,2012.
Under the terms of the original agreement announced a year ago, Celeste can acquire up to a 100 percent interest in Cornish Minerals, with an initial 25 percent equity interest by funding, by May 31, 2012, expenditures incurred or to be incurred with respect to the exploration, development and mining operations of at least £4.67 million or C$7.38 million.
Celeste said that the parties have signed an amendment extending the time to complete the funding arrangements for the initial interest to June 30, 2012.
On May 7, the company announced a proposed private placement the proceeds of which are being used to fund an increase of Celeste's interest in Cornish Minerals from the current 19 percent to the full initial interest prior to the new June 30 deadline.
Celeste is a Canadian corporation currently focused on the acquisition of an interest in Cornish Minerals, which controls mining rights in Cornwall, England, including the South Crofty Mine.
In addition, Celeste continues to assess other tin, copper and copper-gold properties for exploration and development opportunities.
Earlier this month the Calgary-based company said that it has gained additional property assets to facilitate the construction of the future surface infrastructure at South Crofty.
Celeste said the South Crofty operation now has a viable surface site, fully consented for the development of a 21st century mine surface infrastructure in the historic mine district of England.
"This is yet another exciting achievement underpinning the project's progression toward a production decision," Celeste chairman Farhad Abasov said in a release in early May.
"With the recent permitting accomplishments and the advancement of the ongoing exploration program, Celeste is achieving its exploration and development milestones in this project."
Earlier this year, Cornwall Council – the project’s local mineral planning authority – granted new conditional planning consents for developing new surface mine infrastructure and for the extension of the mine's underground working area to 1,460 hectares from 510 hectares.
Proceeds from the company's initial financing are being used to fund a 20,000-metre drill program as well as a preliminary economic assessment on the Cornish Minerals district.