Los Andes Copper has announced details of a recent agreement that will move forward plans to develop a 28-30MW hydroelectric facility on the Rocin River, Putaendo, in Chile’s Fifth Region.
The firm’s wholly owned subsidiary Rocin recently signed an agreement with Icafal Inversiones which covers the development and financing of the hydro scheme.
Under the terms of the deal, Rocin is to set up a subsidiary company that will own, develop, build and operate the facility, with Icafal investing US$7.5 million for a 36.3% interest in the new company.
The hydro project is expected to take 3-4 years to complete, and once in operation will help provide power to Los Andes Copper’s mining operations in the region. It is also expected to generate operating cash flow sufficient to cover the company’s working capital needs and a portion of the exploration and feasibility work for its Vizcachitas porphyry copper-molybdenum project.
