Canada’s Camino and Japan’s Nittetsu Mining intend to partner for the development of the latter’s Los Chapitos copper exploration project in Peru.
Under the letter of intent (LoI), Nittetsu can earn a 35% stake in the project by making C$10.1m in payments and expenditures over a period of three years.
The proceeds will be used for exploration, infill drilling, and metallurgical and engineering studies for the Chapitos project.
Nittetsu will also complete due diligence and sign a definitive agreement with Camino by the end of April 2023.
Upon Nittetsu acquiring a 35% interest in the project, Camino and Nittetsu will set up a joint venture. The Canadian firm will remain the operator of the project.
Located in the iron oxide copper gold (IOCG) belt of the coastal cordillera of northern Chile and southern Peru, the Los Chapitos property covers an area of around 22,000ha.
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Camino CEO Jay Chmelauskas said: “Nittetsu is the operator of the Atacama Kozan mine located in the prolific iron oxide copper gold belt in Chile, next to one of the world’s largest IOCG copper mines, Candelaria.
“Our Japanese partners have extensive mining and geological exploration expertise in a renowned IOCG belt to bring to our southern Peru location. There has been growing interest in southern Peru as an underexplored IOCG mining district, and Nittetsu has recognised our Los Chapitos project as one of the most advanced exploration projects in this coastal cordillera region.”
Nittetsu currently operates the Atacama Kozan copper mine in northern Chile. The mine was developed from an IOCG deposit style similar to Camino’s Los Chapitos project.