COPPER and gold miner OZ Minerals has made a foray into Latin America through a joint venture with junior precious and base metals explorer Azure Minerals.

Under the deal, OZ Minerals can earn a 70 per cent interest in Azure's San Eduardo project in Sonora by spending $US13 million ($14.2 million) on exploration.

The project is considered prospective for copper with associated lead and zinc mineralisation.

OZ Minerals will spend $US3 million ($3.3 million) over the next three years to earn a 51 per cent stake in the project and can earn an additional 19 per cent interest by spending a further $US10 million ($11 million).

The deal will provide a much-needed financial boost to Azure, which had only $1.2 million in cash and cash equivalents at the end of December and posted a first half loss of $1.25 million.

"This joint venture will enable Azure to accelerate our exploration programs and develop our projects," Azure executive chairman Tony Rovira said in a statement.

Field work at the San Eduardo project will commence soon, Azure said.

OZ Minerals had a large portfolio of diversified assets at one stage but was hampered by debt refinancing problems amid the global financial crisis.

It as a result offloaded all of its assets excluding its Prominent Hill mine in South Australia to China Minmetals Non-Ferrous Metals for $US1.35 billion ($1.48 billion) last year.

Source: The Australian