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CoTec Holdings (TSXV: CTH) and Battery Mineral Resources (TSXV: BMR) are set to explore a joint venture to boost copper production from lower-grade sulfide at BMR’s Punitaqui mining complex in Chile.
Under the proposed agreement, BMR would retain 100% ownership and economic benefit of its existing Punitaqui operations, but the companies would split the value generated through the application of CoTec’s technologies and any new development opportunities identified through its involvement.
The partnership would combine BMR's copper operation, infrastructure, permits, workforce and resource base with CoTec's technology, resource optimization, project development and financing.
“While our current operations provide a solid foundation, we believe there is substantial potential to create additional value through the evaluation of lower-grade sulfide mineralization, tailings and other opportunities across the district,” said Lazaros Nikeas, BMR’s CEO. “CoTec brings a differentiated combination of technology expertise, project development capability and access to capital.”
Located in the Coquimbo region of Chile, Punitaqui is a historic copper, gold and silver producing mine. The current focus of the Punitaqui exploration team has been a step-out and infill drilling program focused on three targets: the San Andres, Dalmacia, Cinabrio Sur and Cinabrio Norte.
Testing program
An initial assessment program is planned and will include metallurgical testing and preliminary technical and economic evaluation. CoTec is expected to front the third-part costs for this assessment program.
Julian Treger, CoTec’s CEO, called Punitaqui “an attractive copper district with an established operating platform and significant growth.” He added, “The framework is straightforward and aligned: BMR retains the value of its existing business while both parties share equally in the value created through future development opportunities.”