Norfolk Metals to Acquire Chilean Copper Project for US$55M
Norfolk Metals agreed to purchase the Ciclón copper project in Chile for US$55 million. The transaction includes a capital raising of up to US$120 million and a change in company focus.
The Sydney Morning HeraldNorfolk Metals reached an agreement to buy the permitted Ciclón copper project in Chile for US$55 million. The deal includes US$45 million in cash and US$5 million in company shares, plus an additional US$5 million in shares for the Condor Peak copper-gold exploration portfolio.
The company plans to raise up to US$120 million to support the acquisition and future work. Two incoming directors committed a combined US$10 million to the raising, subject to approvals.
Ciclón is located in northern Chile’s Domeyko Cordillera copper belt. It holds a foreign NI 43-101 resource estimate of 10.1 million tonnes grading 2.97 per cent copper equivalent and is fully permitted for three underground mines, a processing plant and tailings facilities. The project is 55 kilometres northeast of CODELCO’s El Salvador mine. Mining in the district dates back to the 1860s.
Metals must obtain shareholder approval and complete ASX re-compliance before the transaction can close. The company targets completion in August. More than 53,000 metres of drilling is planned across Ciclón, La Encantada and Condor Peak over the next two years. Non-core assets Orroroo and Roger River will be reviewed for joint venture or divestment.
