RCS - Camino Minerals Corp - Camino Announces Filing of Technical Report
17/03/2025 11:15
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250317:nRSQ8289Aa&default-theme=true
RNS Number : 8289A Camino Minerals Corporation 17 March 2025
Camino Announces Filing of Pre-Feasibility Study Technical Report and Provides
Update on Previously Announced Acquisition of the Puquios Copper Project
VANCOUVER, BC / ACCESS Newswire (https://www.accessnewswire.com/) / March 17,
2025 / Camino Minerals Corporation (TSXV:COR)(OTC PINK:CAMZF) (" Camino " or
the " Company ") is pleased to provide an update on its previously announced
(1) acquisition (the " Proposed Transaction ") of all of the issued and
outstanding shares of Cuprum Resources Chile SpA (" Cuprum "), which owns the
construction-ready Puquios copper project located in Chile (the " Puquios
Project "). The Company is pleased to announce that it has filed an
independent technical report (the " Puquios Project Technical Report ")
entitled " Puquios Project - NI 43-101 Technical Report and
Pre-feasibilityStudy, La Higuera, Coquimbo Region, Chile " with respect to the
Puquios Project, which is expected to be one of the Company's principal
material properties for the purposes of Canadian securities laws upon
completion of the Proposed Transaction.
The results of the PFS on the Puquios Project demonstrate a robust project,
with low pre-production capital and capital intensity requirements and a
strong production profile. Specifically, the Puquios Project Technical Report
highlights an estimated project after-tax net present value (" NPV ") (8%
discount rate) of US$118 million with an after-tax internal rate of return ("
IRR ") of 23.4% at a fixed copper price of US$4.28 per pound. All in
sustaining costs for the life of mine are projected at US$2.00 per pound.
" The transaction for the Puquios Project with partners Denham Capital and
Nittetsu Mining from Japan, is expected to close during the first week of
April 2025. The Puquios Project has received its primary environmental permit,
Resoluciones de Calificacion Ambiental (RCA), to build and operate a mine, so
following the closing of the transaction, we are ready to complete any
outstanding sectoral permits and engineering studies and accelerate the
project towards copper production, " stated Jay Chmelauskas, President and CEO
of the Company. " Heap leach copper production is one of the most
cost-effective ways to build a copper mine and these mines are very common in
Northern Chile.The results of our PFS demonstrate robust economics in the
current market for copper, providing the pathway for Camino to become a new
copper producer and to realize our growth strategy that includes advancing our
copper assets in Peru, " said Mr. Chmelauskas.
Separately, the Company also announces that it has filed an amendment (the "
Amendment ") to its management information circular dated February 12, 2025
(the " Circular ")previously filed in respect of its special meeting (the "
Meeting ") of shareholders (the " Camino Shareholders ") to be held on Monday,
March 31, 2025 at 10:00 a.m. (Vancouver time), in orderto provide shareholders
with supplementary financial information in respect of Cuprum and revise
certain financial information in respect of Cuprum originally included in the
Circular.
PRE-FEASIBILITY STUDY HIGHLIGHTS
Project Economics
The following table presents the economic highlights from the PFS.
General LOM Total / Avg.
Copper Realization Price (US$/lb) 4.28
Mine Life (year) 14.2
Production LOM Total / Avg.
Total Mill Feed Tonnes (kt) 25,973
Mill Head Grade Cu (%) 0.49%
Mill Recovery Rate (%) 78.80%
Total Copper Recovered (M lb) 223
Operating Costs LOM Total / Avg.
Mining Cost (US$/t Mined) $2.27
Processing Cost (US$/t Milled) $8.94
G&A Cost (US$/t Milled) $1.24
Total Operating Costs (US$/t Milled) $15.14
Cash Costs* (US$/lb Cu) $1.95
AISC** (US$/lb Cu) $2.00
Capital Costs LOM Total / Avg.
Initial Capital (US$M) $141.90
Sustaining Capital (US$M) $20.70
Closure Costs (US$M) $7.90
Salvage Value (US$M) $16.80
Financials - Pre-Tax LOM Total / Avg.
NPV (8%) (US$M) $161
IRR (%) 26.70%
Payback (year) 3.1
Financials - Post-Tax LOM Total / Avg.
NPV (8%) (US$M) $118
IRR (%) 23.40%
* Cash costs consist of mining costs, processing costs, mine-level G&A,
sales & marketing charges and royalties.
** All-in Sustaining Cost (AISC) includes cash costs plus sustaining capital,
closure cost and salvage value.
Mineral Resources
The following table presents the mineral resource estimation for the Puquios
Project.
Classification Tonnes (kt) Grade Contained Metal (kt)
CuT% CuS% CuCN%
Measured 26,496 0.475 0.117 0.232 126
Indicated 5,664 0.399 0.111 0.167 23
Measured + Indicated 32,160 0.462 0.116 0.22 149
Inferred 660 0.295 0.133 0.059 2
Notes:
1. Mineral Resources are classified using the 2014 CIM Definition
Standards.
2. The Qualified Person for the estimates is Mr. Cristian Quiñones, RM
CMC, AsGeoMin SpA.
3. Mineral Resources have an effective date of March 8, 2021.
4. Mineral Resources are reported using a cut-off grade of 0.15% total
copper (CuT).
5. Mineral Resources are constrained by preliminary pit shells derived
using a Lerchs-Grossmann algorithm and the following assumptions: six
geotechnical domains (52.3° to 59.8°); mining cost of US$2.10/t mined,
processing cost of US$5.69/t processed, including general and administrative
(G&A) costs; variable processing recoveries derived from four regression
models; and a metal price of US$3.45/lb Cu.
6. Rounding as required by reporting guidelines may result in apparent
summation differences between tonnes, grade, and contained metal content.
Metal content based on CuT.
7. Tonnage measurements are in metric units. Copper is reported as
percentages.
Mineral Reserves
The following table presents the mineral reserves estimation for the Puquios
Project.
Reserves Ore (kT) CuT (%) NSR ($/t)
Proven 21,805 0.506 24.64
Probable 4,168 0.43 20.19
Total 25,973 0.494 23.92
Notes:
1. The Mineral Reserves estimates were prepared by Jesse Aarsen, P.Eng.
(who is also an Independent Qualified Person), reported using the 2014 CIM
Definition Standards, and have an effective date of September 21, 2021.
2. The cut-off grade used for ore/waste determination is NSR >=
US$5.59/t. Cut-off grade assumes US$3.19 /lb Cu, block recoveries from the
block model, US$75/t cathode premium, 2% vendor royalty and US$0.30/lb SX/EW
costs.
3. The average associated metallurgical recovery for copper is 79%.
4. Mineral Reserves are converted from Measured and Indicated Mineral
Resources through the process of pit optimization, pit design, production
schedule and are supported by a positive cash flow model.
5. The Mineral Reserves reported are the tonnages delivered to the
crusher, pre-delivery to the heap leach pad.
6. Mineral Reserves are a sub-set of the Mineral Resources.
7. Rounding as required by reporting guidelines may result in summation
differences.
8. Factors that may affect the Mineral Reserve estimate include metal
prices, changes in the interpretations of mineralization, geometry and
continuity of mineralization zones, geotechnical and hydrogeological
assumptions, ability of the mining operation to meet the annual production
rate, process plant and mining recoveries, the ability to meet and maintain
permitting and environmental license conditions, and the ability to maintain
the social license to operate.
The Puquios Project Technical Report was prepared in accordance with National
Instrument 43-101 - Standards of Disclosure for Mineral Projects (" NI 43-101
") and has an effective date of January 24, 2024. The Puquios Project
Technical Report is available on SEDAR+ (www.sedarplus.ca) under the Company's
issuer profile, and the Company encourages readers to review the Puquios
Project Technical Report in its entirety, including all assumptions,
qualifications, and exclusions expressed therein.
THE MEETING
Purpose of the Meeting
The purpose of the Meeting is to consider the items of business set forth in
the notice of special meeting dated February 12, 2025 (the " Notice of Meeting
"), which are, to approve, as more particularly described therein: (i) the
Proposed Transaction and certain matters ancillary thereto; and (ii) the
creation of Santiago Metals Investment Holdings II SLU and Santiago Metals
Investment Holdings II-A LLC (being, the vendors disposing their interest in
Cuprum to the Company under the Proposed Transaction) as new "Control Persons"
(as such term is defined in the rules and policies of the TSX Venture
Exchange) of the Company in connection with the Proposed Transaction.
CAMINO SHAREHOLDERS ARE URGED TO CAREFULLY REVIEW THE MEETING MATERIALS (AS
DEFINED BELOW), INCLUDING THE NOTICE OF MEETING, THE CIRCULAR, and THE
AMENDMENT, WHICH CONTAIN A DETAILED DESCRIPTION OF THE ITEMS OF BUSINESS TO BE
CONSIDERED AT THE MEETING AND THE PROPOSED TRANSACTION, AS WELL AS OTHER
IMPORTANT INFORMATION.
Key Benefits and Recommendation of the Board of Directors
The Company believes that it is acquiring the Puquios Project for less than
the cost that it would otherwise take to bring a similar asset to the same
stage of development, and in doing so, eliminating years from the project
development timeline for a comparable copper asset. The Puquios Project is of
a scale that the Company believes it could (together with its business
partners, Denham Capital Management LP and Nittetsu Mining Co., Ltd.) build by
sourcing the necessary funding from capital markets. The construction and
operation of the Puquios Project is expected to provide synergies to the
Company's other advanced exploration assets in Peru (particularly its Los
Chapitos Project).
The independent members of the board of directors of the Company (the " Board
") (with Mr. Justin Machin abstaining due to the conflict of interest
described in the Circular) unanimously support the Proposed Transaction on the
basis that it is fair and in the best interest of the Company, as it will,
among other things, add a construction-ready copper project to the Company's
portfolio of properties.
THE BOARD UNANIMOUSLY (WITH MR. JUSTIN MACHIN ABSTAINING DUE TO THE CONFLICT
OF INTEREST DESCRIBED IN THE CIRCULAR) RECOMMENDS THAT CAMINO SHAREHOLDERS
VOTE FOR EACH OF THE MATTERS TO BE PRESENTED TO THE SHAREHOLDERS FOR APPROVAL
AT THE MEETING WHICH ARE SET FORTH IN THE CIRCULAR.
AMENDMENTS TO MANAGEMENT INFORMATION CIRCULAR
Following the mailing and public filing of the Circular, the interim financial
statements of Cuprum for the nine months ended September 30, 2024 (the "
Cuprum Interim Financial Statements ") and the audited financial statements of
Cuprum for the financial years ended December 31, 2023 and 2022 (the " Cuprum
Annual Financial Statements ") originally included in Schedule E of the
Circular were amended and reissued to include the basic net loss per share for
the applicable periods presented in the said financial statements. In
addition, the Cuprum Annual Financial Statements were amended and reissued to
(i) revise Note 10 of the Cuprum Annual Financial Statements, in order to
update the fair value of the identifiable assets acquired and liabilities
assumed by Cuprum in connection with certain merger by absorption transaction
(the " Proyecto Merger ") completed by Cuprum, and (ii) revise the statement
of cash flows included in the Cuprum Annual Financial Statements to reflect
the impact of the Proyecto Merger under the "Financing Activities" subheading
therein.
Following the mailing and public filing of the Circular, the management's
discussion and analysis of Cuprum for the three and nine months ended
September 30, 2024 was also amended to (i) restate the table under the heading
"Selected Financial Information" therein, and (ii) correct the amount of
working capital of Cuprum as at September 30, 2024.
The Amendment amends the Circular in order to give effect to the foregoing
changes. Except as expressly provided in the Amendment, the Amendment is in
addition to, and not in replacement of, the original Circular (which remains
unamended, in the form previously mailed to the Camino Shareholders and filed
on SEDAR+). There are no changes to the previously distributed Notice of the
Meeting and related meeting materials.
The Notice of Meeting, the Circular, the Amendment, and certain related
meeting materials for the Meeting (collectively, the " Meeting Materials ")
and the Puquios Project Technical Report are available on SEDAR+
(www.sedarplus.ca) under the Company's issuer profile. The Meeting Materials
are also available on the Company's website at
https://caminocorp.com/investors/#2025specialmeeting (https://pr.report/8brx)
.
About Camino
Camino is a discovery and development stage copper exploration company. On
October 7, 2024, Camino signed a definitive share purchase agreement to
purchase the construction-ready Puquios copper mine in Chile. Camino is
focused on developing copper producing assets such as Puquios, and advancing
its IOCG Los Chapitos copper project located in Peru through to resource
delineation and development, and to add new discoveries. Camino has also
permitted the Maria Cecilia copper porphyry project for exploration discovery
drilling to add to its NI 43-101 resources. In addition, Camino has increased
its land position at its copper and silver Plata Dorada project. Camino seeks
to acquire a portfolio of advanced copper assets that have the potential to
deliver copper into an electrifying copper intensive global economy. For more
information, please refer to Camino's website at www.caminocorp.com
(https://pr.report/8bry) .
ON BEHALF OF THE BOARD For further information, please contact:
/S/ "Jay Chmelauskas"
Camino Investor Relations
President and CEO
info@caminocorp.com
Tel: (604) 493-2058
Neither TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Technical Information
Scott C. Elfen, P.E., Ausenco Engineering Canada ULC., James Millard, P.Geo.,
Ausenco Sustainability ULC., Tommaso Roberto Raponi, P. Eng., Ausenco
Engineering Canada ULC., Jesse Aarsen, P.Eng., Moose Mountain Technical
Services, and Cristian A. Quiñones, RM CMC, AsGeoMin SpA., are the authors of
the Puquios Project Technical Report, are independent of the parties to the
Proposed Transaction, and are "qualified persons" as defined in NI 43-101. Mr.
Elfen, Mr. Millard, Mr. Raponi, Mr. Aarsen, and Mr. Quiñones have prepared or
supervised the preparation of the applicable scientific and technical
information included herein which has been derived from the section(s) of the
Puquios Project Technical Report for which they are individually responsible,
as noted therein.
Further details with respect to the Puquios Project are available in the
Puquios Project Technical Report, filed on SEDAR+ (www.sedarplus.ca) under the
Company's issuer profile.
Cautionary Statements
Completion of the Proposed Transaction is subject to a number of conditions,
including but not limited to, the acceptance of the TSX Venture Exchange and
disinterested shareholder approval. The Proposed Transaction cannot close
until the required shareholder approval is obtained. There can be no assurance
that the Proposed Transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the Circular, any
information released or received with respect to the Proposed Transaction may
not be accurate or complete and should not be relied upon. Trading in the
securities of Camino should be considered highly speculative.
The TSX Venture Exchange has in no way passed upon the merits of the Proposed
Transaction and has neither approved nor disapproved the contents of this news
release.
Certain disclosures in this news release constitute forward-looking
information. In making the forward-looking disclosures in this news release,
the Company has applied certain factors and assumptions that are based on the
Company's current beliefs as well as assumptions made by and information
currently available to the Company. Forward-looking information in this news
release includes, without limitation, statements with respect to the Meeting
(including, the timing thereof and the business to be considered thereat); the
Proposed Transaction and the acquisition of the Puquios Project; the relevance
of the Puquios Project to the Company following the completion of the Proposed
Transaction; the Company's ability to build the Puquios Project, including by
completing engineering studies; and the anticipated synergies from the
construction and operation of the Puquios Project. Although the Company
considers these assumptions to be reasonable based on information currently
available to it, they may prove to be incorrect, and the forward-looking
information in this news release is subject to numerous risks, uncertainties
and other factors that may cause future results to differ materially from
those expressed or implied in such forward-looking information. Such risk
factors and uncertainties include, among others, the risk that the Proposed
Transaction will not be completed as anticipated, or at all; the risk that the
Company will not obtain from the TSX Venture Exchange a waiver of the
sponsorship requirement in respect of the Proposed Transaction; the risk that
the Company will not obtain the requisite regulatory (including, the approval
of the TSX Venture Exchange) and/or shareholder approvals or satisfy the
customary conditions in respect of the Proposed Transaction as anticipated, or
at all; the risk that the anticipated synergies and benefits expected from the
Proposed Transaction will not be realized as contemplated, or at all; the risk
that actual results of the Company's exploration activities may be different
than those expected by management; the risk that the Company may be unable to
obtain or will experience delays in obtaining any required authorizations and
approvals; uncertainties relating to the availability and costs of financing
required in the future; risks and uncertainties associated with fluctuations
in general macroeconomic conditions, securities markets, spot and forward
prices of copper and other base metals and/or certain other commodities,
and/or currency markets; change in national and local government, legislation,
taxation, controls, regulations and political or economic developments; risks
and hazards associated with the business of mineral exploration, development
and mining;and other general business risks and uncertainties, including those
related to the state of equity and commodity markets. Readers are cautioned
not to place undue reliance on forward-looking statements. The Company does
not intend, and expressly disclaims any intention or obligation to, update or
revise any forward-looking statements whether as a result of new information,
future events or otherwise, except as required by law.
(1) See the Company's news releases of June 27, 2024 and October 7, 2024
SOURCE: Camino Minerals Corp
This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END NRASFDSEIEISESD