Los Andes Copper Ltd (TSX-V:LA) said it has completed its previously-announced royalty agreement with Ecora Resources PLC (LSE:ECOR, TSX:ECOR, OTCQX:ECRAF) for a total cash consideration of US$20 million.
The copper project developer said the royalty was calculated over the sale of all minerals produced from Los Andes Copper's Vizcachitas Project in Chile.
"We are very pleased to have closed this transaction which puts us in a very strong position financially with total cash of C$36 million on the balance sheet as of August 2, 2023," Los Andes Copper CEO Santiago Montt said in a statement.
“This allows us to accelerate the implementation of a number of optimizations and further upside opportunities identified by the Pre-Feasibility Study and also allows us to review the potential for share buy backs where they may provide attractive accretive opportunities for our shareholders," he added.
Los Andes Copper noted that Ecora will receive royalty payments calculated as 0.25% Net Smelter Royalty (NSR) on minerals sold on open pit operations and 0.125% NSR on underground operations.
It added that the royalty agreement is in addition to the existing NSRs in place on the project, consisting of a 2% NSR for open pit operations and a 1% NSR on underground operations.
Los Andes Copper is a development company with a 100% interest in the Vizcachitas Project in Chile. The company is focused on progressing Vizcachitas, which is located along one of Chile's most prolific copper belts. Vizcachitas is one of the largest copper deposits in the Americas not controlled by the majors and the company believes it will be Chile's next major copper mine.
Contact Sean at sean@proactiveinvestors.com