Goldsands Development Company announced that the agreement signed with Mineros S.A. on January 20, 2012 has been terminated by Mineros SA effective immediately. The Mineral Right Option and Joint Venture Agreement with Mineros S.A. of Colombia, South America granted Mineros two exclusive options entitling it to acquire up to an 85% interest of GoldSands' ownership interest in 49 Mineral Rights Concessions located in Northeast Peru. Mineros declared that the property does not meet its requirements for the large-scale dredging operation that they were seeking to develop.

However they recognize that there may be sufficient gold bearing channels that may be suitable for smaller scale commercial gold production.