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Los Andes Copper advancing flagship Vizcachitas project, which is set to be Chile's next copper mine

Last updated: 13:46 19 Oct 2023 BST, First published: 11:00 28 Oct 2021 BST

Snapshot

  • Los Andes Copper chairman touts copper's role in achieving Net Zero goals following LME Week 2023
  • Los Andes Copper deserves higher share price due to Vizcachitas potential, broker says
  • Los Andes Copper agrees to $20 million royalty agreement with Ecora Resources
Los Andes Copper Ltd -

About the company

Los Andes Copper Ltd is a Canadian company focused on developing the Vizcachitas copper-molybdenum porphyry project in Chile. The company owns 100% of the Vizcachitas project, one of the largest advanced copper deposits in the Americas, which will become Chile’s next major copper mine. The April 2023 PFS was designed with the goal of achieving an environmental-friendly operation that will position the project on the forefront of global environmental trends for mining. It demonstrated a technically and economically robust project with an IRR of 24%% at US$3.68/lb and an After-Tax NPV @8% of US$2.88 billion. The project has an initial 26 year mine life and the deposit remains open at depth and to the east and west providing the potential for a significant expansion of mine life.

How it is doing

19 Oct 2023

Los Andes Copper Ltd (TSX-V:LA) chairman Eduardo Covarrubias told investors that it is “essential” to fill the supply gap in a sustainable manner in order to meet net zero climate goals.

Covarrubias’s comments came following London Metals Exchange (LME) Week 2023, an annual gathering of the global metals community, where discussions were dominated by positive sentiment around copper.

ESG and the green transition took center stage during the week, with the LME emphasizing efforts to increase the sustainability of metals traded on its platform.

Copper emerged as a significant topic of conversation, particularly at the LME Metals Seminar, where it was the favored base metal for 2024, receiving 53% of the vote in a poll of attendees. Copper plays a vital role in the green transition, as demand is expected to outstrip production levels.

05 Sep 2023

Los Andes Copper Ltd (TSX-V:LA) announced that it has appointed ERM to conduct a strategic analysis of the licensing process for its Vizcachitas Project in Chile and to define the required baseline studies.

The company noted that ERM is a leading global, full-service, sustainability consulting firm and has been operating in Latin America since the 1990s. The firm has seven offices in the region, and more than 160 offices globally. In Chile specifically, ERM has worked with a number of major mining companies including Anglo American, Teck, SQM, Glencore and Albermarle.

03 Aug 2023

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. 

What the brokers say

12 Jun 2023

Los Andes Copper Ltd (TSX-V:LA) stock is undervalued at current levels following the recent positive pre-feasibility study (PFS) for its Vizcachitas copper project in Chile and its potential as a takeover target, according to analysts at Stonegate Capital Partners.

The PFS for the copper project, located 150 kilometres north of Santiago, revealed promising results, giving investors greater insight into the strong economics of the project, the analysts said in a note on Friday.

“The project is situated within Chile’s prolific Central Copper Belt which hosts a number of Tier 1 copper projects,” the analyst wrote. 

What management says

24 Jul 2023

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.

Los Andes Copper agrees to $20 million royalty agreement with Ecora Resources

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...

on 24/7/23