Former Bolivian president, ex-Codelco chief team up on Chile copper project
miningweekly.com
By: Liezel Hill
22nd April 2009
Updated 3 hours ago
TORONTO (miningweekly.com) – Vancouver-based junior Apoquindo Minerals has agreed to sell as much as 75% of its namesake copper-oxide project in Chile to Minera SA, the firms announced on Tuesday.
The deal brings together some big names: Apoquindo's chairperson is Juan Villarzú, who was CEO of the world's biggest copper-miner, Codelco, until 2006, while Minera's board is chaired by former Bolivian President Gonzalo Sánchez de Lozada.
Minera will earn 50% of Apoquindo's mining assets in Chile by spending C$10,8-million within four years, and will have an option on another 15% by spending at least C$5-million to complete a feasibility study on the project.
Minera can also earn another 10% (for a total of 75%) by directly financing or arranging financing for the joint venture (JV) through to the commencement of commercial production.
The firms will create a JV called Antakena Mining to hold the Apoquindo assets.
“Apoquindo's advanced-stage project in Chile will position Minera as a stronger, more diversified company in terms of geographies and commodities," said president and CEO Jim Komadina.
Minera has also agreed to buy five-million units – each comprising one Apoquindo share and one-half of a share-purchase warrant – in a nonbrokered private placement, for C$2-million.
Apoquindo will use the proceeds to fund exploration on its properties and for general working capital purposes.
Once in operation, the Apoquindo copper project could produce between 10 000 t/y and 20 000 t/y of copper cathodes, the company estimates. |
