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Metminco Ltd firms up terms for Los Calatos farm-out

Published: 17:30 04 Aug 2016 EDT

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Metminco Ltd (ASX:MNC, LON:MNC) has firmed up terms of the farm-out for the Los Calatos project in Peru with investment fund CD Capital.

One of the CD funds, CD Capital Fund III, will invest up to US$45mln for a 70% stake and fund a definitive feasibility study at the prospect.

Metminco will retain a 30% indirect interest in the project.

Final sign off is expected in late August or early September with work to commence soon after on a Pre-Feasibility Study (PFS).

Metminco will also move its stake in the project into a new a Canadian private company, Los Calatos Holding Ltd (LCH).

CD Capital Fund III’s investment will be in three tranches:  an US$16mln for a 51% interest in LCH and two subsequent investments of US$14.5mln to take that up to 65% and 70% respectively.

Currently on care and maintenance, once settlement occurs work will start to upgrade the existing mineral resources to Measured and Indicated status, expand the resource with exploration drilling,  complete the PFS, and work on permits.

Carmel Daniele, CD Capital's founder and chief investment officer said Los Calatos Project was a world class mining development opportunity.

 

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