AMN - SOUTH AFRICA: Plan to develop JV copper plant

Handa Mining Corporation has signed a joint venture agreement with O’Okiep Copper Company (OCC) and SHIP Copper Company for development of a copper processing plant in South Africa. The proposed plant will recover copper from broken rock lying on the surface of properties held by the two property owners in the northern Cape Province of South Africa.

Handa will have 60 days to determine whether to proceed and if this occurs, Handa will issue an aggregate of 3.5 million common shares to the property owners.

There would be 1.5 million shares issued immediately and the remaining 2 million being issued following two years of production from the plant.

For the first 24 months of production Handa would be entitled to 65% of any profits, as defined under Canadian IFRS, generated by the plant. Following this period, Handa’s share in any profits would decrease to 33%. Handa will remain the owner and operator of the plant.

The owners of the project will be responsible for all infrastructure and regulatory permits required to operate the plant.

Completion of the transaction is conditional upon the Board of Handa deciding to move forward on the transaction and securing predominantly debt funding for the project.

Handa is a Canadian-listed mining and development company.

As part of its revitalised strategy, the company acquired the Mejillones Phosphate Project in Chile, in October 2018. This consists of three exploration and eight exploitation concessions on which Handa is evaluating the development strategy.

The company continues to pursue joint venture opportunities in order to gain further exposure to surface mining opportunities that are in the pre-production or production stage.

http://handamining.com/