REG - Nativo Resources Plc - Operational Update: Tesoro Gold Mine

Nativo ResourcesAnnouncement

14/10/2024 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241014:nRSN9653Ha&default-theme=true

RNS Number : 9653H  Nativo Resources Plc  14 October 2024

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

 

14 October 2024

 

Nativo Resources Plc

("Nativo" or the "Company")

 

Operational Update: Tesoro Gold Mine

 

Agreement for establishment of gold ore processing plant

 

Nativo Resources plc (LON:NTVO), which has interests in precious metals mining
and production in Peru, provides the following update on the Tesoro Gold Mine
("Tesoro"), southern Peru, which is held by the Company's 50%-owned Peruvian
joint venture, Boku Resources SAC ("Boku").

Boku has secured the permits for the establishment and operation of its own
gold ore processing plant ("La Patona Project") and entered into an option
agreement with a landholder for use of its land (the "Land Agreement").

The Land Agreement provides Boku with an eight month exclusivity period to
undertake a feasibility study for the plant in order to confirm commercial and
technical viability. Upon confirmation, Boku has an automatic right to proceed
with development and operations. Under the Agreement, in the event that a
decision is made to build and operate the plant, Boku has the unilateral right
to use existing permits and rent the land, in return for monthly rental
payments equivalent to 4% of the plant revenue. This includes an option to buy
out the rental payments and take ownership of the land and permits for a
one-off payment of $750,000, which can only be exercised after two years of
plant operation.

During the exclusivity period, Boku has no financial obligations, and there
are no upfront payments required for acquiring this option.

La Patona Project Gold Ore Processing Plant: Vertical Integration

If commissioned, the gold ore processing plant, La Patona, will be located on
a 500-hectare mining concession in the Acarí district, Arequipa. This
location is just 30 kilometers from Tesoro, allowing Boku to optimise
transportation and therefore reduce logistics costs.

The initial plan involves installing machinery to process between 50t and 80t
per day, focusing primarily on ore extracted from Bonanza and La Dorada.

In the medium term, Boku intends to scale the plant to 350t per day, the
maximum capacity allowed for small-scale mining.

Commitment to Formalisation and Organic Growth

Saransky, a company established in Peru, is in the process of obtaining the
required formalisation permits to conduct mineral processing and beneficiation
activities at La Patona. Boku will support Saransky in completing this
formalisation process, ensuring full regulatory compliance and reinforcing its
 dedication to responsible and formal mining.

Stephen Birrell, Chief Executive Officer of Nativo, commented:

"This is a landmark agreement as our JV partner roles out the next stage of
the business plan in Peru, and we are really excited about the opportunities
we are developing with Boku. This demonstrates progress against Nativo's
growth strategy, seeking to vertically integrate operations through the
development of a gold ore processing plant in close proximity to, and
affiliated with, the Company's Tesoro project."

 

 

For further information please contact:

 Nativo Resources                                           Via Vigo Consulting

 Stephen Birrell, Chief Executive Officer                   nativo@vigoconsulting.com (mailto:nativo@vigoconsulting.com)

 Zeus Capital Limited (Nominated Adviser and Joint Broker)  Tel: +44 (0)20 3829 5000

 James Joyce

 James Bavister

 Isaac Hooper

 Peterhouse Capital limited (Joint Broker)                  Tel: +44 (0)20 7469 0930

 Duncan Vasey

 Lucy Williams

Rose Greensmith

 Vigo Consulting (Investor Relations)                       Tel: +44 (0)20 7390 0234

 Ben Simons                                                 nativo@vigoconsulting.com (mailto:nativo@vigoconsulting.com)

 Peter Jacob

Anna Sutton

 

 

About Nativo Resources plc (formerly Echo Energy plc)

 

Following the partial divestment of its assets in Argentina, Nativo entered
into a 50:50 joint venture in Peru in July 2024 with an experienced local
partner for precious metals (gold/silver) mining and processing of gold ore
(own and third party production) and the cleaning of known tailings deposits
containing Measured and Indicated resources of gold and silver. Through the
JV, known as Boku Resources, Nativo has secured an opportunity to scale
operations in Peru, owning 50% of the production and resources.

 

Initially, Boku is establishing formalised artisanal and small mining
operations on its 100% held Tesoro Gold concession, southern Peru, targeting
early cash flow generation by Q4 2024. The Company plans to establish its own
gold ore processing plant and, longer-term, to pursue its low capex strategies
to appraise and exploit tailings deposits to recover gold, and develop the Ana
Lucia Polymetallic concession.

 

Follow us on social media:

 

LinkedIn: https://uk.linkedin.com/company/nativoresources-plc
(https://uk.linkedin.com/company/nativoresources-plc)

X (Twitter): https://x.com/nativoresources (https://x.com/nativoresources)

 

Glossary

 

 Au   gold
 g/t  grams per tonne

 kg   kilogram
 m    meters
 t    tonnes

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. 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  UPDBDBDGSDBDGSD