Los Andes Copper Ltd (TSX-V:LA) has provided a corporate update, highlighting two significant developments.
First, Desala Petorca SPA, a desalination project crucial for water security in Chile's drought-affected Petorca Province, announced a strategic alliance with Colbún S.A., a major Chilean power company.
Los Andes in September 2022 signed a LOI with Desala Petorca to secure a sustainable water supply for its Vizcachitas copper project, making it an anchor client for the desalination project.
Colbún has committed to furthering the desalination project's development and has taken control of its investment vehicle.
One of Chile’s largest construction companies Icafal has also joined the project as a minority partner.
“We are very pleased that the Desala Petorca project has attracted partners with such a strong track record and expertise in the development of large engineering projects,” Los Andes CEO Santiago Montt said.
“This marks a significant milestone, further de-risking the Desala Petorca project and, by extension, the Vizcachitas project, ensuring a sustainable water supply for Vizcachitas going forwards.”
Further, Los Andes has streamlined its royalty agreement with Franco Nevada Corporation for the Vizcachitas project to simplify its execution once the project begins production.
As part of the streamlining, the company received an interest-free prepayment of US$1.02 million from future royalties.
“We are very pleased to have concluded the streamlining of the Franco Nevada royalty, further strengthening our balance sheet without any dilution to shareholders,” Montt commented.
“We continue to review additional optimizations and upside opportunities for the Project, both at a corporate and project level, and look forward to providing further updates as we progress.”