Los Andes Copper Subsidiary Enters Hydroelectric Project Development Agreement

Los Andes Copper Ltd. (TSXV:LA) announced yesterday that Rocin SpA, its wholly owned subsidiary, has entered into an agreement with Icafal Inversiones SA regarding the development and financing of a Chile-based “hydroelectric project generation facility with an expected installed capacity of 28-30 MW.”

Agreement terms include:

• Rocin will incorporate a subsidiary company (the ‘Subsidiary’) that will own, develop, build and operate the Hydroelectric Facility and will transfer to the Subsidiary its non-consumptive water rights over a section of the Rocin River, Putaendo, Fifth Region, Chile, together with the engineering and other studies and reports for the development of the Hydroelectric Facility
• Icafal has agreed to make an investment of US$7.5 million (the ‘Total Investment’) in shares of the Subsidiary
• US$2 million of the Total Investment will be used to finance the development of the Hydroelectric Facility, to be invested during the initial development period
• The remaining $5.5 million will be used to partially finance construction, and will be invested by Icafal once the Subsidiary has obtained all required permits and construction and other material contracts are in place
• Icafal will be entitled to a 36.3% interest in the Subsidiary after it has made the Total Investment of US$7.5 million
• The Subsidiary and Icafal have agreed to enter into a fixed price contract for the initial development of the Hydroelectric Facility

Click here to read the full Los Andes Copper Ltd. (TSXV:LA) press release.