Los Andes Copper Interim CEO Santiago Montt and Chairman Eduardo Covarrubias joined Steve Darling from Proactive to share significant news about the company's royalty agreement with Ecora Resources. Under this agreement, Ecora will pay Los Andes Copper a total cash consideration of $20 million in exchange for a royalty calculated over the sale of all minerals produced from the Vizcachitas Project in Chile.
The Vizcachitas Project is one of the largest copper deposits in the Americas not controlled by major mining companies. As part of the agreement, Ecora will receive royalty payments of 0.25% Net Smelter Royalty on minerals sold from open pit operations and 0.125% NSR on minerals sold from underground operations. Montt emphasized that this substantial investment from Ecora is a testament to the immense potential of the Vizcachitas Project and serves as validation of the extensive technical work undertaken by the Los Andes Copper team over many years. The influx of funds from this agreement will now accelerate the implementation of various optimizations for the project. Furthermore, Montt shared with Proactive that Los Andes Copper will soon resume drilling activities. The company received authorization from the Second Environmental Court in Chile after demonstrating compliance with all the conditions imposed on July 20, 2022. Covarrubias also said this royalty agreement and the upcoming drilling activities represent significant steps forward for Los Andes Copper as it advances the development of the Vizcachitas Project and explores the vast potential of this valuable copper deposit in Chile.