History of Metminco
Metminco was incorporated in May 2006 as a private company registered in Victoria, Australia. After converting to a public company and acquiring a portfolio of Australian exploration assets, Metminco listed on the ASX as a diversified mineral explorer in October 2007. In December 2008, Metminco made a scrip offer to acquire 100% of the issued capital of Hampton Mining Limited (Hampton). The offer closed on 8 July 2009 with Metminco having acquired a 36.5% interest and becoming the major shareholder in Hampton. Hampton was a public unlisted Australian company with a portfolio of six projects located in Chile and Peru.
In Chile, Hampton held a 50% interest in the Mollacas, Vallecillo, Loica and Isidro projects, and a 100% interest in part of the Camaron Project with an option to acquire the adjoining Genesis tenements. In Peru, Hampton held an option to acquire the Los Calatos Project from North Hill Group Holding Inc (North Hill), which was subject to a conditional buy back right by Barrick Corporation with respect to a 51% interest in the project.
In September 2009, Metminco entered into an option agreement with Junior Investment Company to acquire a further 31.9% interest in Hampton (JIC Option). On 7 December 2009 the Company entered into a sale and purchase agreement to acquire North Hill from Highland Holdings Resources, conditional on exercise of the JIC Option. The Company then elected to divest its Australian projects.
During the first half of 2010 Metminco raised funds through an AIM listing in London (granted on 1 April 2010), increased its holding in Hampton to 69.4% by exercise of the JIC Option, and completed the purchase of North Hill. On 6 December 2010, Metminco completed the acquisition of Hampton's minority shareholder's interests resulting in Hampton becoming a wholly owned subsidiary of Metminco.
On 28 April 2011 the Company completed the acquisition of a further 50% interest in the Mollacas, Vallecillo and Loica projects, resulting in these projects becoming 100% owned, in addition to purchasing Barrick's conditional buy back right with respect to the Los Calatos Project.
Having secured a 100% interest in its advanced projects (Los Calatos, Mollacas and Vallecillo), Metminco embarked on a major work programs at these projects. During 2014, and following the conclusion of initial exploration programs, the Company abandoned the Isidro, Camaron and La Piedra project's, the latter of which was acquired in June 2011.
In June 2016, Metminco completed the purchase of MirafloresCompaniaMinera SAS, a Colombian company, from RMB Resources Australia Pty Ltd. MirafloresCompaniaMinera owns 100% of the Quinchia Gold Portfoilio which includes the Miraflores Gold Project and high potentialexploration targets such Tesorito, Chuscal and Dosquebrados.
The Miraflores Project has Measured and Indicated Mineral Resourcesof 9.27mt at 2.82g/t Au and 2.77g/t Ag (840,000 oz Au and 825,000 oz Ag) and Inferred Resources of 0.5mt at 2.36g/t Au and 3.64g/t Ag at a cut-off grade of 1.20 g/t Au. The resources are based on 25,884 meters of drilling in 73 diamond drill holes and 236 meters of underground channel samples. This includes 3,624m in 10 holes carried out by AngloGold Ashanti and B2Gold in 2006-2007. These resources have been reported in accordance with JORC Code (2012 Edition).
In October 2016 the Company concluded an agreement with CD Capital Resources Fund III (CD Capital) whereby CD Capital acquired a 51% controlling interest in the Los Calatos Project by investing US$16 million in the Los Calatos Project, CD Capital had the right but not obligation to fund up to US$39 million on completion of a feasibility study and in so doing earn up to a 70% interest in the project.
In June 2017 the Company sold its remaining interest in the Los CalatosProject to CD Capitalfor US$5 million net of costs.
The remaining projects, as summarised below, are located in the well-constrained metallogenic belts of Peru and Chile:
- Mollacas Project (100% owned) covers an area of 33 square kilometres, located in Region IV, Chile, approximately 65 kilometres east of the town of Ovalle, and 160 kilometres by road from the port of La Serena, Chile;
- Vallecillo Project (100% owned) covers an area of 179 square kilometres, located approximately 50 kilometres northeast of Ovalle, Chile and 25 kilometres north of the Mollacas Project; and
- Loica Project (100% owned) covers an area of 35 square kilometres located approximately 100 kilometres to the southeast of Ovalle, Chile.
Metminco has the requisite experience base to explore and develop these projects, with the vision of becoming a mid-tier copper producer.