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Camrova Resources to Acquire Las Vacas Flotation Plant and Serves Minera y Metalurgica del Boleo

Mining News - Published on Fri, 21 Feb 2020

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Camrova Resources Inc announced that it has entered into an agreement with Compañia Minero Don Alberto SA to acquire for a payment of USD 3.6 million, the Las Vacas flotation plant located near Illapel, Chile. Camrova plans to use this 24kt/m plant to process smelter slag produced by the El Chagres Smelter of Anglo American Sur SA located near Catemu. Mr Tom Ogryzlo, interim CEO, said in a that “This is a very important step in the future of the Company. It can pave the way for the Company to produce in the order of 3 million lbs of equivalent copper annually thereby generating cash flow to enable future growth.” As well, pursuant to terms of the MMB Shareholders Agreement Camrova has delivered notice to the other shareholders of MMB, Kores Lux, Kores Boleo Lux and the KBC, a Right of First Offer to sell its shares in the “Boleo Project”. This offer will expire on April 14, 2020. At that point if Kores Lux, Kores Boleo Lux and the KBC have failed to express their willingness to acquire the shares they can then be sold to a third party.”

To fund the acquisition of the Las Vacas Project, Camrova intends to conduct a concurrent financing of CDN$ 9.0 million (USD 6.7 million). The Company is in discussions with various interested investors and lenders. Further disclosure will be made when the terms of the Concurrent Financing are determined.

The Company has decided to sell its current 7.23% ownership position (subject to further slight dilution) in MMB, a world class producer of cathode copper, cobalt and zinc. The Minera y Metalurgica del Boleo mine and processing plant entered production in Q1, 2015 at a capital cost of US$ 2.6 Billion and has a plant design capability to produce up to 56,697 tonnes of copper cathodes per year. Camrova has delivered Notices of Right Of First Offer to Kores Lux, Kores Boleo Lux and the KBC with an expiry date of April 14, 2020, for reaching a decision. Any funds generated from this transaction will be dedicated to general working capital requirements and the Las Vacas project in Chile.

Regulatory and shareholder approval may be required for some of the transactions described above.

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Posted By : Rabi Wangkhem on Fri, 21 Feb 2020
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