Business
Los Andes Copper Announces Notice of Planned Payment of US$ 5,000,0000 to the Company Under the 2020 Royalty Agreement
Vancouver, British Columbia--(Newsfile Corp. - April 28, 2022) - Los Andes Copper Ltd. (TSXV: ...
About this update from Los Andes Copper Ltd.
[{"type":"text","content":"Los Andes Copper Announces Notice of Planned Payment of US$ 5,000,0000 to the Company Under the 2020 Royalty AgreementVancouver, British Columbia--(Newsfile Corp. - April 28, 2022) - Los Andes Copper Ltd. (TSXV: LA) (OTCQX: LSANF) (\"Los Andes\" or the \"Company\") is pleased to report that it has been advised that RCF VI CAD LLC (\"RCF\") has entered into a definitive agreement (the \"Definitive Agreement\") to sell (the \"Proposed Sale\") the 2% NSR royalty on the Company's Vizcachitas Copper Project (the \"Royalty\") owned by RCF pursuant to that certain Royalty Purchase Agreement dated May 27, 2020 (the \"Royalty Purchase Agreement\"). If the Proposed Sale is consummated, then RCF will owe the Company a contingent purchase price payment of US$5,000,000 pursuant to the terms of the Royalty Purchase Agreement.R. Michael Jones, CEO of Los Andes, said: \"We are very pleased to see the proposed sale by RCF to a company planning to complete a direct listing on the TSX-V in the near future. The Royalty Sale and future listing of a new base metal royalty company mark the growing recognition of our copper asset as a rare world class copper deposit at a time of growing interest in copper globally.\"DetailsLos Andes Copper Ltd is the 100% owner of the Vizcachitas large open pit Copper Project in Chile. If the Proposed Sale is consummated for the consideration set forth in the Definitive Agreement, then RCF will owe the Company US$5,000,000 following the closing. The Proposed Sale is subject to the successful fundraising by the purchaser of the Royalty and other closing conditions. At this time, the Company can provide no assurance that the transaction will close as planned. The Vizcachitas Project is a copper-molybdenum porphyry deposit, located 120 kilometres north of Santiago, in an area of good infrastructure. The Company's Preliminary Economic Assessment (the \"PEA\"), delivered in June 2019, highlights that the Project has a post-tax NPV of $ 2.7 billion and an IRR of 26.7%, based on a $3.50 per pound copper price. It also has a Measured Resources of 254.4 million tonnes having a grade of 0.439% copper and Indicated Resource of approximately 1.03 billion tonnes having a grade of 0.385% copper.About Los Andes Copper Ltd.Los Andes Copper Ltd. is an exploration and development company with an 100% interest in the Vizcachitas Project ...