April 27, 2011 / 3:28 PM / in 6 years

UPDATE 1-La Quinta plans to buy sulphide project in British Columbia, shares up

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April 27 (Reuters) - Canada’s La Quinta Resources Corp said it intends to buy a sulfide project in the mining district of northern British Columbia from Cariboo Rose Resources Ltd .

Shares of La Quinta, a junior precious metals explorer whose key operations are in Nevada, rose 20 percent to 9 Canadian cents on heavy volumes on Wednesday morning on the Toronto Venture Exchange.

The project, Carruthers Pass, is a massive sulphide property covering 3,250 hectares, according to the Cariboo Rose website.

La Quinta can acquire 90 percent of the project from Cariboo over a six-year term by spending C$2 million in work commitments, and making payments of C$470,000 in cash and issuing 2 million shares of its stock to Cariboo.

It has the opportunity to buy the remaining 10 percent interest at fair market value, La Quinta said in a statement.

Cariboo, which operates six gold and copper exploration projects, has properties in British Columbia and in the White Gold District of the Yukon.

La Quinta explores gold and silver on its Easter project and Black Jack property in Nevada. (Reporting by Bhaswati Mukhopadhyay; Editing by Sriraj Kalluvila)

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