Our 100% owned Los Cardones (formerly named Concordia) gold project is located approximately 55 kilometers southeast of the city of La Paz in Baja California Sur, Mexico. We acquired Los Cardones in August 2002 for $2.3 million. Current gold reserves at Los Cardones are 1.3 million ounces. In 2009, we completed a bankable feasibility study for the project which demonstrates strong economics from a 10-year mine life that will produce over the first five years of the mine an average of 142,900 ounces of gold at an average cash cost per ounce of US$372 from an open pit mine and standard CIP plant.
In February 2012, Vista entered into an Earn-in Right Agreement with Mexico-based Invecture Group, S.A. de C.V. ("Invecture") with respect to the Los Cardones gold project. Under the terms of the Agreement, Invecture made a non-refundable payment of $2 million in exchange for the right to earn a 62.5% interest in the project (the "Earn-in Right"). The Agreement provides that the exercise of the Earn-in Right by Invecture is conditional upon receipt of the Change of Land Use Permit and Authorization of Environmental Impact which are required to develop the project; Invecture funding, managing and operating the project during the earn-in period; and Invecture making an additional payment of $20 million. The Earn-in Right will expire if not exercised by February 7, 2014.
We believe Invecture's in-country experience, financial strength, and committed management team make Invecture an excellent strategic partner to take the lead in securing the authorizations and financing required to bring Los Cardones into production. Invecture holds approximately $500 million in assets and is the owner of Frontera Copper Corporation, which owns and operates the Piedras Verdes Copper Mine in the Mexican State of Sonora.
* Invecture changed the project's name to Los Cardones. There will remain reference to the project's previous names of "Concordia" and "Paredones Amarillos" in the listing of technical reports and miscellaneous documents.