Vancouver, British Columbia--(Newsfile Corp. - February 21, 2017) - Amerigo Resources Ltd. (TSX: ARG) ("Amerigo" or the "Company") is pleased to announce that its wholly-owned Chilean subsidiary, Minera Valle Central S.A. ("MVC"), has executed a financing mandate agreement (the "Mandate Agreement") with BBVA Chile and BBVA Securities Inc. (collectively "BBVA").
The Mandate Agreement sets out an exclusive arrangement with BBVA describing the activities needed to arrange a loan facility (the "Loan Facility") for the second phase of the planned expansion of MVC's operations for the processing of tailings from the historic Cauquenes deposit (the "Cauquenes Phase Two Expansion"). BBVA has agreed to seek credit approval to provide up to 50% of the amount of the Loan Facility, and to act as mandated lead arranger and fronting hedge bank.
The Cauquenes Phase Two Expansion will consist of the installation of additional flotation cells and associated plant required to increase recovery rates and enable MVC to reach an estimated annual production of 87 million pounds of copper. The estimated cost of the Cauquenes Phase Two Expansion is US$30 million, to be financed by the Loan Facility. Construction of Phase Two is expected to be completed in the second half of 2018.
The Mandate Agreement contemplates the completion of technical, environmental, market, insurance, fiscal and legal due diligence and is subject to customary representations, warranties and conditions precedent, including agreement on final terms and conditions and requisite documentation for the loan, completion of due diligence and procurement of credit approvals.
Indicated terms of the Loan Facility have been received and are expected to be finalized on completion of due diligence which is now underway.
Rob Henderson, Amerigo's President and CEO stated "We are extremely pleased to work again with BBVA in the next phase of MVC's production expansion, and look forward to starting construction in Q2-2017."
About the Company:
Amerigo Resources Ltd. is an innovative copper producer with a long-term relationship with Codelco, the world's largest copper producer. Amerigo produces copper concentrate at the MVC operation in Chile by processing fresh and historic tailings from Codelco's El Teniente mine, the world's largest underground copper mine. Tel: (604) 681-2802; Fax: (604) 682-2802; Web: www.amerigoresources.com; Listing: ARG:TSX.
