Latin America gold mining company Minera IRL Ltd. (MIRL.LN) said Tuesday it has made the final payment to Rio Tinto PLC (RIO.LN) to purchase the Ollachea Gold Project in Peru and has also signed a deal to complete a bankable feasibility study by the third quarter of 2012.

The $2 million payment to Rio Tinto Mining and Exploration S.A.C. completes a series of staged payments totaling $6.25 million over four years for the purchase of the Ollachea Gold Project, it said.

The company added the only remaining commitment to Rio Tinto is a payment based on the project's net present value, which is due six months after the public release of a bankable feasibility study--an assessment of the project's commercial viability.

Minera said contracts have been signed with AMEC PLC (AMEC.LN) and Coffey International Ltd. (COF.AU) to complete a feasibility study by third-quarter 2012.

Executive Chairman Courtney Chamberlain said, "All aspects of the project are progressing well including the feasibility study, preparing to drive the exploration tunnel and final in-fill drilling. It is also very pleasing that Ollachea is now recognized by the international exploration community as a major gold discovery."

The project is estimated to contain around 1.4 million ounces of gold.

Shares at 0820 GMT were flat at 68.0 pence, in a slightly higher Alternative Investment market--up 0.1%.

-By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; iain.packham@dowjones.com

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