22nd Sep 2014 08:05
LONDON (Alliance News) - Herencia Resources PLC said Monday it has entered into a second non-binding memorandum of understanding in relation to the future sale or treatment of ore from its Picachos copper project in northern Chile.
The memorandum of understanding has been signed with the Minera China Co Ltda, owners of the Minera China processing plant, located approximately 30 kilometres south of Picachos.
The memorandum is structured along similar lines to that signed with the owners of the Tambillos copper processing plant last week, and covers the option of the outright purchase of Picachos ore from Herencia, it said in a statement.
On Thursday, Herencia said it had entered into a memorandum of understanding with the owners of the Tambillos processing plant regarding the negotiation of a toll treatment agreement for the Picachos copper project to treat up to one million tonnes per year mined from the Picachos site.
Negotiations to agree final commercial and technical parameters, including timing and pricing, will commence in the coming weeks, it added.
"Moving forward we will look to finalise the terms around the toll treatment or direct sale options, and complete the next round in the work program to then move as quickly as possible into production mode in the second half of 2015," said Managing Director Graeme Sloan.
The signing of the memorandum with Minera China, "only a week after signing a similar agreement with the owners of the nearby Tambillos processing plant, clearly demonstrates the optionality we have to treat or sell ore which we anticipate to be mined at Picachos," Sloan added.
Herencia's shares were up 8.6% to 0.467 pence per share Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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