- Los Andes Copper (LA) has been advised that RCF VI CAD LLC (RCF) has entered into a definitive agreement to sell the 2 per cent NSR royalty
- The NSR royalty is on the company’s Vizcachitas Copper Project owned by RCF in line with that certain Royalty Purchase Agreement dated May 27, 2020
- Los Andes Copper Ltd is the 100 per cent owner of the Vizcachitas large open pit Copper Project in Chile
- The proposed sale is subject to the successful fundraising by the purchaser of the royalty and other closing conditions
- Los Andes Copper Ltd. is an exploration and development company with an 100 per cent interest in the Vizcachitas Project in Chile
- Shares of Los Andes Copper (LA) were up 1.832 per cent, trading at $13.90 at 1:36 PM ET
Los Andes Copper (LA) has been advised that RCF VI CAD LLC (RCF) has entered into a definitive agreement.
Under the terms of the agreement, RCF VI CAD LLC will sell the 2 per cent NSR royalty on the company’s Vizcachitas Copper Project.
If the proposed sale is completed, RCF will owe the company a contingent purchase price payment of US$5,000,000 in accordance with the terms of the Royalty Purchase Agreement.
“We are very pleased to see the proposed sale by RCF to a company planning to complete a direct listing on the TSX-V in the near future,” stated R. Michael Jones, CEO of Los Andes.
“The Royalty Sale and future listing of a new base metal royalty company mark the growing recognition of our copper asset as a rare world class copper deposit at a time of growing interest in copper globally,” he added.
Los Andes Copper Ltd is the 100 per cent owner of the Vizcachitas large open pit Copper Project in Chile.
If the proposed sale is consummated for the consideration set forth in the definitive agreement, then RCF will owe the company US$5,000,000 following the closing.
The proposed sale is subject to the successful fundraising by the purchaser of the royalty and other closing conditions. At this time, the company can provide no assurance that the transaction will close as planned.
The Vizcachitas Project is a copper-molybdenum porphyry deposit, located 120 kilometres north of Santiago, in an area of good infrastructure.
The company’s preliminary economic assessment (PEA), delivered in June 2019, highlights that the project has a post-tax NPV of $ 2.7 billion and an IRR of 26.7 per cent, based on a $3.50 per pound copper price.
It also has a measured resource of 254.4 million tonnes having a grade of 0.439 per cent copper and Indicated Resource of approximately 1.03 billion tonnes having a grade of 0.385 per cent copper.
Los Andes Copper Ltd. is an exploration and development company with an 100 per cent interest in the Vizcachitas Project in Chile.
Shares of Los Andes Copper (LA) were up 1.832 per cent, trading at $13.90 at 1:36 PM ET.
