Australia-based Pura Vida said in a statement on Tuesday that this approval was the key step in finalising a farm-out agreement made with Plains Exploration & Production (now a Freeport-McMoRan subsidiary) in January.
Under the terms of the deal, Freeport-McMoRan will pay $15 million in cash for 52% operated stake in the 2.7 million-acre block, which lies in the Essaouira basin off the coast of Morocco.
The company is also expected to fully fund up to $215 million in drilling and exploration costs, including at least two exploration wells.
The remaining steps in the completion of the farmout include the signing of an amendment to the petroleum agreement to introduce Freeport-McMoRan as a partner in the Mazagan permit, and the signing of joint ministerial orders.
