Handa Mining has signed a joint venture (JV) agreement with O’Okiep Copper Company (OCC) and SHIP Copper company (SHIP) to fund and construct a copper processing plant in South Africa.
The proposed plant will recover copper from broken rock lying on the surface of properties held by OCC and SHIP in the northern Cape Province, 600km north of Cape Town.
Handa can determine whether to proceed within a period of 60 days. If the company decides to go ahead, it will issue an aggregate of three and a half million common shares to OCC and SHIP.
One and a half million common shares will be issued immediately and the remaining two million following two years of production from the copper processing plant.
Handa will receive 65% of any profits generated for the first 24 months of production from the plant.
After this period, the company’s share in any profits would fall to 33%.
It will remain the owner and operator of the plant. The project owners will be responsible for all infrastructure and regulatory permits that are needed for the plant operation.
Completion of the transaction is dependent on the Handa board deciding to proceed with the transaction and obtaining predominantly debt funding for the project.
In October last year, the company acquired the Mejillones Phosphate Project in Chile as part of its revitalised strategy. The project comprises three exploration and eight exploitation concessions, where the company is currently evaluating the development strategy.
The company’s JV agreements are aimed at securing further exposure to surface mining opportunities that are in the pre-production or production stage.