- Camino Minerals (CAMZF, Financial) has completed the acquisition of the Puquios copper project in Chile with a 50/50 joint venture with Nittetsu Mining.
- The Puquios project shows a promising 23.4% after-tax internal rate of return with a capital cost of US$142 million.
- Camino issued 23,333,333 common shares at C$0.45 per share, and Nittetsu provided a cash payment of C$9,932,480.96, with contingent payments up to C$25 million included.
Camino Minerals Corporation (CAMZF) has officially completed the acquisition of Cuprum Resources Chile SpA, the owner of the construction-ready Puquios copper project in Chile. The acquisition was achieved through a 50/50 joint venture with Nittetsu Mining, which will provide half of the required equity capital and lead the construction and operations of the project.
The Puquios copper project promises a 23.4% after-tax internal rate of return with an estimated capital investment of US$142 million. Camino issued 23,333,333 common shares at a rate of C$0.45 per share, while Nittetsu contributed a cash payment of C$9,932,480.96. The agreement also includes contingent payments of up to C$25 million, reflecting the project's potential value.
The acquisition also incorporates a 1.25% net smelter returns royalty agreement and an investor rights agreement. Following this deal, the board of directors has been restructured to include seven members, with Chris Adams as the new Chairman and three nominees from Denham Capital.
The Puquios project is strategically located in Chile, the world's largest copper jurisdiction, and is positioned with primary environmental permits in place, paving the way for construction. The collaboration with Nittetsu and contributions from Denham Capital are anticipated to ensure successful project execution and a potential valuation re-rating as Camino progresses towards becoming a significant copper producer.
