Atacama Reaches Financing/Development Agreement
VANCOUVER, BRITISH COLUMBIA--Atacama Minerals Corp. (the ``Company'') is pleased to announce that it has reached an agreement with ACF Minera S.A. for the development and operation of the Company's Aguas Blancas industrial minerals project in Chile.
ACF is one of the most experienced industrial mineral producers in Chile having carried on operations since the early 1900's. ACF currently produces in excess of 1,000 tonnes of iodine annually at its Lagunas mine in Chile. Among many successful projects, ACF was also responsible for the development and initial operation of the iodine facilities of DSM Minera, a subsidiary of the Dutch chemical conglomerate DSM Fine Chemicals B.V..
Under the terms of the Agreement with Atacama, ACF Minera will over the next two years finance, construct and operate mining and processing facilities at Aguas Blancas to a capacity of 720 tonnes and will be responsible for marketing the processed iodine. Upon reaching production levels of 720 tonnes per annum, ACF will have acquired a 30% direct interest in Atacama Minerals Chile S.C.M, a wholly owned subsidiary of Atacama. Development costs to achieve this production level, plus interest, will be paid back to ACF from project revenues on a preferred basis. Profits will be distributed 70% to Atacama and 30% to ACF. Mine construction is scheduled to commence in August following a 30 day technical review of the project by ACF. Initial iodine sales are expected in the first quarter of 2001.
Upon ACF vesting in 30% of Atacama Chile, iodine production at Aguas Blancas will be steadily increased to 1200(plus) tonnes per annum, funded from project cash flow. Concurrent with this increase, Atacama and ACF intend to aggressively develop Aguas Blancas' nitrate and sulphate reserves.
Richard P. Clark, President of Atacama commented, ``We are delighted to have ACF join us in the development of the Aguas Blancas deposit and very much look forward to working with them. ACF's expertise and local experience will ensure that Aguas Blancas reaches its full exciting potential as one of the world's most important new mineral producers.''
Aguas Blancas is a world class deposit of iodine, sodium nitrate and sodium sulphate. Current proven/probable reserves stand at 44 million tonnes, grading 512 ppm iodine, 22% sodium sulphate and 2.87% nitrates. Under the current mine plan, full operation at Aguas Blancas will produce annually 1200(plus) tonnes of iodine, 300,000(plus) tonnes of sodium sulphate and 100,000(plus) tonnes of nitrate. With extensive additional mineral holdings at Aguas Blancas, upside potential on mine life and additional iodine, nitrate and sulphate reserves is significant. |
