PROJECT UPDATE: Anfield Signs Purchase Agreement with Blue Zen Memorial Parks

Anfield Resources (TSXV:ARY) inked a deal to support a multi-stage plan that will allow it to advance its Arizona-based copper project, Binghampton Copper Queen, and bolster its position in the junior resource space.

The deal, which is pending due diligence, will give Anfield the opportunity to advance the copper project through to production via an offtake agreement. The first stage of the agreement includes an investment by Blue Zen of $2 million that will be used to fund Binghampton Copper Queen’s NI 43-101 resource estimate by no later than May 15, 2014. Depending on the results of the resource estimate, Anfield will then sell 50 percent of the Binghampton Copper Queen project to Blue Zen. The company has also given Blue Zen first right of refusal in regards to the Binghampton Copper Queen project’s production offtake agreement.

Corey Dias, Anfield’s CEO, believes that with Blue Zen, his company has found a partner that can help it significantly advance the Binghampton Copper Queen project to its production state. “Moreover,” Dias states in today’s press release, “Anfield’s success in negotiating a production off-take agreement places it in a unique position vis-a-vis many of its junior resource peers, as such an agreement — which can be used as collateral to secure debt lending for project capex, a crucial component of the building of a mine — materially increases the likelihood that a project would reach the production stage.”

The deal has the potential to change the face of Anfield Resources moving forward. If Anfield can meet the qualifications, it will find itself transitioning from a junior development company to a prospective future producer. In a note to Copper Investing News, Dias highlighted that “while there are more advanced-stage junior resource companies, Anfield has the benefit of an off-take agreement,” a harder milestone for a junior resource company to achieve.

Anfield’s Binghampton Copper Queen project is located within the Arizona VMS Belt and covers over 2,000 hectares of both patented and state land. The project consists of two past-producing copper mines, Binghampton and Copper Queen. According to the Arizona Geological Survey, when it was in operation, Binghampton produced roughly 8 million pounds of copper at an average grade of 3.1 percent. Given the project’s location, the company is confident it will meet the parameters set in the agreement.

Securities Dislcoure: I, Vivien Diniz, hold no investment interest in any of the companies mentioned. 

Editorial Disclosure: Anfield Resources is an advertising client of the Investing News Network. This article was not written as part of the company’s campaign and is not paid-for content.