(Kitco News) - Adventus Mining (TSXV: ADZN) and Salazar Resources (TSXV: SRL) announced today that the Government of Ecuador has signed the investment contract in support of the development of the El Domo copper-gold mining project.
In its press release, Adventus said that the investment contract (IC) was originally reported on November 10, 2022 as being approved for signing by the Government of Ecuador through its investment institution, Investment Promotion and Attraction Strategic Committee.
Since then, additional bespoke changes relevant to El Domo development and future operations were approved, including protective arbitration and dispute resolution language approved by the auditor general, it added.
President and CEO of Adventus Mining Christian Kargl-Simard commented, "As this is the third major production related IC between the Government of Ecuador and the metals and mining industry, after Lundin Gold's Fruta del Norte and EcuaCorriente's Mirador mines, this is a major step forward for El Domo.
“The IC gives our stakeholders additional certainty for development and was a key conditions precedent to be able to draw our US$235.5M in project financing facilities. With the IC completed, we continue to work with Government Ministries and expect to announce additional permit approvals and El Domo related contracts with the Government of Ecuador over the next months."
Adventus Mining is an Ecuador-focused copper-gold exploration and development company. Among other projects, Adventus Mining is majority owner of the 215 sq. km Curipamba copper-gold project, which has a completed feasibility study on the shallow and high-grade El Domo deposit.
Adventus noted that El Domo - Curipamba is one of the highest grade and lowest capital intensity copper-gold projects not just in the Americas, but globally, adding that with a detailed feasibility study completed to top international standards, and strong community and government support, El Domo - Curipamba is expected to be the next modern mine in Ecuador.
The mine is planned to start in 2024, with average annual production of 10,463 tpa copper and 21,390 tpa copper equivalent over the life-of-mine. A 2021 feasibility study indicated an IRR of 32% and NPV8% of US$259 million for initial open-pit development only.
