Description and Investing Strategy
Metminco's growth strategy is to become a gold producer in the near term whilst maintaining a longer-term interest in gold and copper within South America, in particular Colombia, Peru and Chile. To this effect, the Company purchased the Quinchia Gold Portfolio in Colombia in June 2016 which includes the Miraflores, Dosquebradas, Tesorito and Chuscal projects as well as retaining an interest in its Peruvian and Chilean assets.
The Company seeks to deliver growth in long term shareholder value by progressing the following objectives:
- Advance the feasibility study on the Miraflores Project with an expected completion date for the feasibility study by the end of first half of 2017. The Miraflores Project is expected to produce 50,000 oz Au per annum over a life of mine of 9 years. Current estimate for commencement of construction during the second quarter of 2018.
- Enhance anticipated future gold production from the Miraflores Project through exploration and development of high potential prospects in the Quinchia Gold Portfolio.
- With CD Capital advance the Los Calatos Project through pre-feasibility and feasibility studies realising significant value for shareholders in this world class asset and taking advantage of strong copper fundamentals.
In Colombia, the gold industry is gaining momentum with a number of new EIA licences being issued to companies such as AngloGold Ashanti, B2Gold and Continental Gold for the development of three new open pit and underground mines, while Red Eagle Mining, a Canadian listed company, recently completed the construction of a new mine and processing facility at San Ramon, north of Medellin in Colombia.
Both Chile and Peru have substantial mineral extraction industries, developed over many decades, and both countries are major producers of copper. It is estimated that in 2016 Chile and Peru hosted 40% of the world’s copper reserves, and produced some 39% of the world’s copper.
All countries offer favourable jurisdictions for exploring and developing mineral projects with Colombia now attracting significant investor interest.
Statement by the Chairman, Dr Phillip Wing:
“The Company achieved two major milestones during 2016. Firstly, the completion of a scoping study at Miraflores has confirmed our belief that we have a highly deliverable and robust near term gold project. Accordingly, we will expedite the completion of the Bankable Feasibility Study and are in advanced stages of executing the required funding. Secondly, the equity funding raised for the Los Calatos Project will ensure that our shareholders retain a significant interest in a world class asset that has the potential to be developed in the early 2020’s when it is anticipated that there will be a supply deficit in the global copper market.
With two exciting projects being developed in parallel, Metminco now represents a diversified junior miner that has the capacity to deliver shareholder value in the near term, coupled with the upside potential within the larger Quinchia Gold Portfolio, which includes significant exploration targets. We are very optimistic for the future of the Company and look forward to advancing our projects.”