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Los Andes Copper Announces Signing of Royalty Agreement with Ecora Resources PLC for US$20,000,000
Vancouver, British Columbia--(Newsfile Corp. - July 24, 2023) - Los Andes Copper Ltd. (TSXV: LA) ...
About this update from Los Andes Copper Ltd.
[{"type":"text","content":"Los Andes Copper Announces Signing of Royalty Agreement with Ecora Resources PLC for US$20,000,000Vancouver, British Columbia--(Newsfile Corp. - July 24, 2023) - Los Andes Copper Ltd. (TSXV: LA) (OTCQX: LSANF) (\"Los Andes\" or the \"Company\") is pleased to announce that it has entered into a royalty agreement (the \"Royalty\") with Ecora Resources PLC (\"Ecora\") for a total cash consideration of US$20,000,000. The Royalty is calculated over the sale of all minerals produced from the Company's Vizcachitas Project in Chile (the \"Vizcachitas Project\"). 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.The Royalty agreement announced today 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. The transaction is expected to close in the next two weeks.Santiago Montt, CEO of Los Andes, commented: \"We are very pleased to be entering into a new partnership with Ecora. The investment is testament to the superior quality and potential of the Vizcachitas Project and validates the extensive technical work undertaken by the team over many years. With the proceeds of this transaction, we can accelerate the implementation of a number of optimizations and further upside identified in our April 11, 2023 Pre-Feasibility Study.\"Eduardo Covarrubias, Chairman of Los Andes, commented: \"This transaction further strengthens the Company's balance sheet to a point never seen before. Los Andes is now in a unique position to evaluate and implement multiple shareholder value enhancing options at a project level including drilling and additional fieldwork and, subject to the required approvals, share buy backs to the extent they present attractive accretion opportunities for our shareholders.\"Marc Bishop Lafleche, CEO of Ecora, commented: \"The energy transition is expected to drive copper demand to new levels and we are delighted to add Vizcachitas to our growing portfolio of copper royalties. This transaction further complements our copper royalty exposure which is underpinned by a development pipeline poised to deliver continued growth until the middle of the next decade. Vizcachitas fits our core investment criteria as a large scale, low ...