Coro Mining Corp. (TSX:COP) announced that its subsidiary SCM Berta S.A. (SCMB) has signed a memorandum of understanding with local Chilean construction group Inmobiliaria y Constructora Fundart Ltda to provide debt financing in the amount of US$15 million for the Berta copper leach project. SCMB will also acquire the Nora SXEW processing plant to further the development of the project.
As quoted in the press release:
SCM Berta has been in discussions with the owners of a third party SXEW plant with a view to selling pregnant leach solution (“PLS”) to them. The opportunity recently arose to purchase the existing Nora SXEW plant at a good price from a company in administration and so enable SCM Berta to produce copper cathode directly without being tied to a third party for PLS treatment or water supply. SCMB intends to expand the SXEW circuit of the Nora plant from 3ktpy to 5ktpy copper cathode and install a crushing circuit and leach pads at Berta. Longer term, the establishment of leach pads at Berta and Nora will provide the scalability for SCMB to identify additional leachable resources within trucking distance of both and thereby extend the life of the operation or expand it. No modification will be required to the existing Environmental Impact Declaration for Berta which is anticipated to be granted shortly, and the Nora plant is fully permitted.
Coro president and CEO, Alan Stephens, said:
We are delighted that SCMB has obtained this debt facility and is acquiring the Nora plant on favourable terms. Successful completion of the development of Berta and expansion of Nora will result in Coro achieving its founding corporate objective of becoming a producing mining company. We look forward to completing the acquisition of the Nora plant and the finalization of the loan documentation in October and to initiating the ramp up of copper cathode production in early 2015.