Located 33km North East of the city of Antofagasta, Planta Prat comprises a small SXEW agitation leach plant built in 2009 to treat old leach residues derived from a precipitation plant that operated in the nearby Mantos Blancos mine several decades ago. The Prat plant failed to operate efficiently due to build-up of iron sulphate and closed after a few months of operation. Based on positive initial agitation leach test work carried out by our consultants, ProTech SA, Coro believes that this issue can be resolved.
The agreed purchase terms (August 2014) for Coro to own a 65% interest are as follows;
- $10,000 payment on signature of Letter of Intent (paid)
- $40,000 payment on February 6, 2015 (paid)
- $100,000 payment on formation of Newco (51% Coro) on completion of expansion of the Prat plant to 1,200 tonne per year (2,645,547 lbs) copper capacity by August 6, 2017 at Coro’s cost
- Additional 14% interest in Newco earned by Coro upon Commencement of Commercial Production (80% of 1,200 tonne per year (2,645,547 lbs) copper annual production rate for 60 consecutive days)
- First right of refusal over remaining interest
Constanza owns some of the leach residues and intends to gain access to the rest. Coro ahas also identified additional deposits in the area which can be potentially treated by Planta Prat and intend to acquire them.
Subject to the results of due diligence sampling and metallurgical test work, Prat could be put back into production quickly and cheaply to provide a source of cash flow to the Company at a low acquisition cost and with a good rate of return. Coro also views the acquisition of an interest in Planta Prat as one step in the establishment of a larger district wide business.