Quadra Mining has signed a deal with China’s largest utility State Grid International to develop major copper projects in Chile.

The joint venture will develop and operate Quadra’s Sierra Gorda project and Franke Mine and will invest in other prospective copper assets.

Under the terms of the MOU, Grid International, a subsidiary of China’s State Grid Corp, will secure project financing while Quadra will manage day-to-day operations.

Quadra will inject $900m in assets, while SGID will contribute capital to gain a 50% equity interest in the venture.

In addition, SGID will also acquire a 9.9% stake in Quadra through a private placement.

The Canadian mining company expects to produce 250 million pounds of copper this year.