The agreement with two undisclosed Spanish private companies gives Toronto-based Lundin (TSX:LUN) the option of paying up to US$78 million (60 million euros) for an 80% interest in the Touro copper project, consisting of 205 mining claims in the northwest province of La Coruña.Stone Crusher
The deal sets out three separate payment milestones: $13 millon to exercise the option; $39 million upon a decision to begin mine construction; and $26 million on the start of commercial production. The option is exercisable until Oct. 1 2012 pending completion of due diligence, including step-out drilling and other technical work.
If the mine goes forward, it will be Lundin's second copper operation in Spain after Aguablanca, a nickel-copper mine about 80 kilometres from Seville. Lundin also has mines in Sweden, Ireland, Portugal and, outside of Europe, the Tenke Fungurume copper-cobalt mine in the DRC, which it operates with Freeport-McMoRan.
"We have faith in the scheme has the latent to be quickly progressive and we are fit on our way to manufacture a conclusion on the option, having armed several tool rigs on the stuff former this year," supposed Lundin Head and CEO Paul Conibear. "In addition to easy access to known mineral resources exposed in three pre-existing open pits, much of the copper mineralization within the Touro property is nearly flat lying, at or near surface."Stone Crusher Plant
The Touro mine worked in the 1970s and 80s through a 6500 tpd concentrator but was padlocked down in 1986 once copper prices acquired a dive. The stuff has not stayed explored since. Lundin whispered it tactics to jerk puncturing thru the aim of finishing an NI-43101 reserve approximation. Antique resources are pegged at 196 zillion tonnes categorized 0.39% Cu.