Sierra Metals and Jinchuan Group Sign MOU for Bahuerachi Copper Project

Sierra Metals (TSX:SMT,NYSEMKT:SMTS) announced that it has signed a memorandum of understanding (MOU) to cooperate with Jinchuan Group Co. Ltd. on the development of Jinchuan’s Mexico-based Bahuerachi copper project.
As quoted in the press release:

Jinchuan acquired the Bahuerachi copper porphyry deposit in connection with its acquisition of Tyler Resources Inc. in 2008 and has conducted multiple geologic and engineering studies with an aim to developing a large scale open pit copper mine. The Bahuerachi project concessions are adjacent to Sierra Metals’ Bolivar copper mine concessions.  The Bolivar mine started commercial production in 2012 and has successfully expanded its copper production levels over the past five years and more recently conducted a more aggressive exploration program with the objective to increase its resource tonnage and copper ore grades.
The MOU has the objective of accelerating the cooperation between Jinchuan and Sierra Metals at the Bahuerachi mining concessions in a manner that is value enhancing and mutually beneficial to both companies and capitalizes on Sierra Metals’ success in operating in Latin America and particularly in the Bahuerachi region.  The MOU is a non-binding agreement that both parties will negotiate in good faith to evolve into a specific comprehensive cooperation agreement to govern their relationship.

J. Alberto Arias, chairman at Sierra Metals, commented:

[W]e are delighted to have progressed discussions with Jinchuan to formalize of a memorandum of understanding and we are looking forward to accelerating the development of the Bahuerachi project in partnership with Jinchuan.  We expect to be able to take advantage of the synergies in our operations at Bolivar, sharing our expertise and local know-how.  We value our relationship with Jinchuan and foresee further growth opportunities for both companies working together in Mexico and Latin America.

Click here to read the full Sierra Metals (TSX:SMT,NYSEMKT:SMTS) press release.