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.