Business
Re Agreement
Re Agreement.
About this update from Antofagasta Plc
[{"type":"text","content":"\n Antofagasta PLC\n14 November 2006\n\n\n\n\n\n Antofagasta plc\n\n Antofagasta announces agreement with Ascendant Copper Corporation to develop \n the Chaucha Project in Ecuador\n\nLondon, 14 November 2006\n\nAntofagasta plc ('Antofagasta') is pleased to announce that it has signed a\nLetter of Agreement ('Agreement') with Ascendant Copper Corporation\n('Ascendant'), a mining company listed on the Toronto Stock Exchange, to acquire\nan interest in Ascendant's Chaucha Project. The Chaucha Project is a\ncopper-molybdenum prospect located in the Western Cordillera of the Andes in\nsouthern Ecuador, approximately 70 kilometres west of the town of Cuenca. The\nmineral concession covers an area of 2,544 hectares with applications by\nAscendant in progress for further mineral concessions from the appropriate\ngovernment entities.\n\nUnder the terms of the Agreement, Antofagasta has the right to earn up to an\nundivided 60% interest in the Chaucha Project. The interest will be acquired by\nearning an equity interest in Compania Minera DosRios S.A. ('DosRios'), a\nwholly-owned subsidiary of Ascendant which holds (or will hold) all of the\nmineral concessions associated with the Chaucha Project.\n\nAntofagasta has committed to fund at least US$1 million of expenditure (after\nwhich it has the right to terminate the Agreement at any time) and will\nsubsequently earn its equity interest in successive stages by spending a total\nUS$40 million over a six-year period in four distinct phases of qualifying\nexpenditures. These expenditures will cover exploration and advancement costs\nincluding, in the later phases, preparation of a feasibility study and a final\npayment on completion to Ascendant.\n\nMarcelo Awad, CEO of the mining division, Antofagasta Minerals S.A., commented,\n'We are very pleased to announce this agreement with Ascendant. The agreement\nwill further develop Antofagasta's portfolio of exploration prospects in this\npart of Latin America, complementing our existing operations in Chile and\nrepresenting a further step in our strategy of expanding internationally.'\n\n+--------------------------------------+-----------------------------------+\n|Enquiries - London | Enquiries - Santiago |\n+--------------------------------------+-----------------------------------+\n|Antofagasta plc | Antofagasta Minerals S.A.|\n|Tel: +44 20 ...