HCH has negotiated a 12-month extension with private Chilean mining group SCM Carola for payments on the Cortadera acquisition. The two payments of US$10m and US$15m will now be due in mid-July 2021 and 2022 respectively. This has alleviated pressure on the Company to raise the required capital to make the first payment, originally due mid-2020. The deferral provides time to continue exploration and add significant value, ahead of any potential strategic investment or partnership with a mid-cap or major mining company. Cortadera is emerging as a world class porphyry deposit which has already attracted the attention of larger miners. In addition, HCH recently accepted a proposal from a government owned operator to sell ore from its Productora deposit. This is an opportunity to generate early cashflow to partly fund Cortadera exploration. Importantly, the partnership could facilitate expedited permitting of Cortadera.
To access the full report please log in under the Client Area at the bottom of this page.
Argonaut’s Client Area allows you to view delayed share prices, access Argonaut’s wealth of Research as well as create custom portfolios and set up company watch lists.
If you would like to access our research please contact us to create an account.
