Meridian buys full control over Chilean venture

Meridian Gold of Reno said last week it agreed to purchase full control of the joint venture property in Chile it previously shared with Gold Fields.

The deal consolidates Meridian's control of 720 square kilometers of contiguous land in the expanding El Penon gold and silver district in northern Chile, which has yielded discoveries of over 4.6 million ounces of gold and 110 million ounces of silver.

Minera Meridian Ltda, a wholly-owned subsidiary of Meridian Gold, Inc., paid $7.5 million to Gold Fields Chile Ltda, a whollyowned subsidiary of Gold Fields Ltd.

The purchase price also includes a 2 percent royalty on all precious metals production.

Darcy Marud,Meridian's vice-president of exploration, said the El Penon district is the company's top exploration priority this year.