Los Andes Copper Ltd. (TSXV: LA | OTC: LSANF) has signed a US$20M royalty agreement with Ecora Resources. The royalty includes a 0.25% net smelter royalty (NSR) on minerals sold on open pit operations and a 0.125% NSR on underground operations over Los Andes; entire Vizcachitas project.
“We are very pleased to be entering into a new partnership with Ecora,” commented Los Andes CEO, Santiago Montt.
“The investment is testament to the superior quality and potential of the Vizcachitas project and validates the extensive technical work undertaken by the team over many years. With the proceeds of this transaction, we can accelerate the implementation of a number of optimizations and further upside identified in our 11 April 2023 pre-feasibility study.”
Los Andes is developing its wholly-owned Vizcachitas copper-molybdenum project in Chile, 150km north of the capital. Vizcachitas is located along one of Chile’s most prolific copper belts and its February 2023 prefeasibility study demonstrated a 26-year open pit operation at 136,000t/d.
The project has proven and probable reserves of 1.22Bt grading 0.36% Cu, 136ppm Mo, and 1.1g/t Ag, or 0.41% Cu Eq. Measured and indicated resources, inclusive of reserves, total 1.54Bt grading 0.383% Cu, 155ppm Mo, and 1.1g/t Ag, or 0.436% Cu Eq.
The new agreement is in addition to existing NSRs of 2% for open pit operations and 1% for underground operations. The transaction is expected to close in the next two weeks.
The NSR rates will be subject to certain adjustments in the event of delays in beginning production, with RBC Capital Markets acting as financial advisor to Los Andes in connection with this transaction.
For further information, please visit: www.losandescopper.com
