Exersice of Option to acquire Touro Copper Project in Spain
Atalaya Mining has excersiced an option to 10% of the share capital of Cobre San Rafael S.L., as part of an earn-in agreement which will enable the Company to acquire up to 80% of past copper producer Proyecto Touro.
Atalaya is focused on creating a portfolio that combines producing, development and exploration assets and this acquisition is considered as a low risk first step in creating a growth portfolio to complement Proyecto Riotinto.
Background: Proyecto Touro is located in northwest Spain and was operated by Riotinto Patiño from 1973 to 1986. Infrastructure is in place (high voltage power, road network, international airport, deep-water ports). The Company has been working with its consultants to evaluate the viability of the project, including significant drilling, resource evaluation, mine planning, metallurgical test work and plant engineering required to fast track the project to feasibility stage ahead of permitting. The results confirmed and expanded the resources identified by previous owners which remains open. As a past producer, the orebody is well understood and exhibits straightforward metallurgy, good copper recoveries and clean concentrates. The deposit is amenable to open pit mining in shallow pits. Capital expenditures are expected to compare favourably with copper projects globally.