|January 31, 2018|
Handa Signs Conditional Agreement to Acquire Mejillones Phosphate Project in Chile
January 31, 2018 (Vancouver, British Columbia) – Handa Copper Corporation ("Handa" or the "Company") (TSX-V: HEC) today announces that it has signed an agreement to acquire the Mejillones phosphate project (the “Project”) in Chile from Buccaneer Holding Limited (“BHL”).
Subject to the completion of due diligence satisfactory to the Company and electing to continue with the transaction, Handa will acquire from BHL and its subsidiaries 100% ownership of 13 exploration and 8 exploitation concessions believed to be highly prospective for phosphate production. The Project covers a contiguous area of approximately 8,200 hectares situated south of the town and deep-water port of Mejillones approximately 60km north of Antofagasta. The main terms of the agreement are as follows:
Jan Nelson, CEO, noted that the acquisition of Mejillones signals a significant milestone in Handa’s strategy moving forward. “Handa’s executive team and board have undertaken a major review of our approach to new projects, and we have shifted our focus to assets that allow for rapid development, have low capital cost requirements and can deliver cash flow within a short period of time. We believe that Mejillones project fits all of these criteria.”
“BHL has completed detailed geological mapping, a reverse circulation drilling program, metallurgical test work and preliminary mine design and order of magnitude capital cost estimate work on the Project. A significant resource is inferred and test work show that the in situ phosphate can easily be upgraded through mechanical processes to an economically saleable product.”
“The Mejillones project in Chile could position Handa as one of the key players in the South American phosphate market. We are working on a unique strategy to take this project through its development phase and into production without any significant dilution to our shareholders. We will present to shareholders this strategy within the next few weeks after we have finalized the key aspects of the strategy. Our vision, however, is simple: build a mining company that will deliver production resulting in cash flow within as a short period of time as is possible and with minimal shareholder dilution.”
Chief Executive Officer
(as that term is defined in policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
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