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Los Andes Copper signs $20M royalty agreement with Ecora Resources

Kitco Media
By Vladimir Basov
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(Kitco News) - Los Andes Copper (TSX-V: LA) announced on Monday that it has entered into a royalty agreement with Ecora Resources for a total cash consideration of US$20 million.

The company said that the royalty is calculated over the sale of all minerals produced from the company’s Vizcachitas project in Chile.

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, it added.

Los Andes also noted that 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.

“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,” the company said in a press release.

Los Andes Copper is a development company with a 100% interest in the Vizcachitas project in Chile. The company indicated that Vizcachitas is one of the largest copper deposits in the Americas not controlled by the majors, adding it believes the project will be Chile’s next major copper mine.

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Vladimir Basov

Vladimir (PhD, MEng in Mining) is a professional mining engineer, scientist and analyst that has more than 20 years of practical in-field and research experience. He is particularly interested in collecting, processing baseline data and writing insightful data-driven mining industry analytics, articles, statistical and research reports.

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