Subject to due diligence, Anfield Resources Inc. (TSXV:ARY) entered into a Purchase Agreement with Blue Zen Memorial Parks to advance Anfield’s Binghampton Copper Queen project in Arizona.
Subject to due diligence, Anfield Resources Inc. (TSXV:ARY) entered into a Purchase Agreement with Blue Zen Memorial Parks to advance Anfield’s Binghampton Copper Queen project in Arizona. The Agreement includes a $2 million project-level initial investment by Blue Zen, which will be used to delineate an NI 43-101-compliant copper resource estimate.
- Pending due diligence, the Agreement lays out a multi-stage plan which would advance this asset through to copper production supported by a production off-take agreement
- BZM’s principal shareholder, Mr. Jiang Jiaping, is the founder and CEO of China-based Jiangsu TianDiLong Land Resource Technology Co. Ltd. (“TDL”); TDL has annual sales of $1.8 billion and produces copper cathodes, rods and wires and is currently pursuing a vertical integration strategy, including the building of an 800,000-ton copper smelting facility
- An initial $2 million project-level investment by BZM will be used to delineate an NI43-101-compliant copper resource estimate; following resource delineation, the Parties will fund both the PEA and FS on a 50:50 basis
- BZM will have a right of first refusal with regard to securing the project’s off-take agreement
- Agreement moves Anfield into upper tier of junior resources companies
As quoted in the press release:
Under the terms of the Agreement, Anfield will sell up to 50% of the BCQ project, subject to the results of the NI43-101 resource estimate; the initial $2 million investment will either represent: 1) 20% of the BCQ project, if the resource estimate is equal to, or greater than, 2 billion pounds of copper-equivalent; or 2) 50% of the BCQ project, if the resource estimate is less than 2 billion pounds of copper-equivalent. If the resource estimate is greater than 2 billion pounds, BZM will have the option to acquire an additional 30% interest in the BCQ project – in addition to its initial 20% ownership stake – at a purchase price of $1 million per 10% increment.
Subject to certain milestones, this Agreement also provides a comprehensive framework for the: 1) joint funding, and preparation of, a Preliminary Economic Assessment; 2) joint funding, and preparation of, a Feasibility Study; and 3) joint funding, and construction of, the mine and subsequent copper production. The Agreement also gives BZM the right of first refusal with regard to the BCQ production off-take agreement, providing BZM with an option to purchase 100% of mine production over the life of the mine, priced at a 10% discount to the LME copper spot price.