Los Andes Copper closes US$5M convertible debenture investment from Queen's Road Capital

Los Andes Copper Ltd (CVE:LA) (OTCMKTS:LSANF) (FRA:L41A) said the previously announced US$5 million convertible debenture investment from Queen’s Road Capital Investment Ltd (CVE:QRC) was now complete. 

The proceeds will go towards completing the pre-feasibility study for the company’s Vizcachitas copper project in Chile. 

READ: Los Andes Copper set to create environmental, social and governance (ESG) committee; announces board changes

“Since the start of the year, we have accomplished a number of achievements at Vizcachitas, which have had a positive impact on the delivery of the pre-feasibility study, and we are excited to have completed the investment by Queen’s Road Capital,” said Fernando Porcile, executive chairman of Los Andes.

“The metallurgical testwork carried out has confirmed a copper recovery of 91.4% and the production of a high-quality clean concentrate. The awarding of the environmental approvals will allow us to complete the required drilling programmes, which could potentially prove an extension of the higher-grade mineralisation to the north of the Vizcachitas project.”

Porcile also noted that the Queen’s Road Capital investment highlighted the support for the project and the company.

“The funds will be used to advance the final work programmes of the pre-feasibility study, that will showcase the attractive potential of the project and contribute to the growing demand for copper as economies transition to green technologies,” he added.

The convertible debenture has a five-year term, carries an 8% coupon, and will be convertible into common shares in Los Andes at C$10.82 each. The interest is payable quarterly, 5% in cash and 3% in shares, at the 20-day volume-weighted average price prior to the interest payment date.

Vizcachitas is a copper-moly porphyry deposit, located 120 kilometres north of Santiago, Chile and is poised to be the country’s next major copper mine.

A preliminary economic assessment (PEA) dated June 13, 2019, showed a post-tax net present value of around US$1.8 billion and an internal rate of return (IRR) of 20.77%, based on a US$3 per pound copper price.

The project boasts a measured resource of 254.4 million tonnes at a grade of 0.439% copper and an indicated resource of around 1.03 billion tonnes at a grade of 0.385% copper.

Contact the author at [email protected]

Story by ProactiveInvestors