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Los Andes Copper Ltd. Announces Completion of NSR Royalty Agreement with Resource Capital Fund
Vancouver, British Columbia--(Newsfile Corp. - January 27, 2020) - Los Andes Copper Ltd. (TSXV...
About this update from Los Andes Copper Ltd.
[{"type":"text","content":"Los Andes Copper Ltd. Announces Completion of NSR Royalty Agreement with Resource Capital FundVancouver, British Columbia--(Newsfile Corp. - January 27, 2020) - Los Andes Copper Ltd. (TSXV: LA) (\"Los Andes\", or the \"Company\") is pleased to announce that it has entered into a net smelter return (\"NSR\") royalty agreement with Resource Capital Fund VI L.P (\"RCF\") for a total price of US$8 million, payable in tranches (the \"Royalty\"). The Royalty applies to the sale of all locatable minerals produced from the San Jose 1/3000 exploitation concession (the \"San Jose Concession\") that forms part of the Company's Vizcachitas Project in Chile (\"the \"Project\"). Under the Royalty, RCF will receive 0.98% NSR for open pit operations and 0.49% NSR for underground operations. Los Andes Copper Ltd. is listed on the TSX-V under the ticker: LA.Following this transaction, the overall NSR level for the San Jose Concession and for the other concessions covering the mineral resources of the Project is 2.00% for the open pit operations and 1.00% for the underground operations. The economic model presented in the Company's Preliminary Economic Assessment (\"PEA\") dated June 13, 2019 already includes an NSR level of 2.00% for the open pit operations and 1.00% for the underground operations for all mineral resources. HighlightsGross proceeds of US$8 million from RCF US$1.5 million has been paid by RCF on closing and registration of documents in ChileThe remaining US$6.5 million is scheduled to be paid in four equal quarterly installments, the first of which is due on March 31, 2020The financing will be primarily used to fund a Prefeasibility Study (\"PFS\") for the Project and to prepare a baseline for the environmental approval package Fernando Porcile, Executive Chairman, commented:\"I am delighted to announce the completion of this NSR royalty agreement which highlights the continued support from RCF to the Vizcachitas Project, and strongly positions the Company to continue successfully developing the Project.Following the completion of the Project's updated PEA, released in June 2019, the proceeds from this NSR will be used to advance work on the PFS, which has already commenced and is progressing well.Further drilling programmes are also expected as part of the PFS and to explore prospective areas immediately surrounding the current m...