Handa Copper Corp. said Jan. 31 that it agreed to acquire the Mejillones phosphate project in Chile, which covers a contiguous area of approximately 8,200 hectares comprising 13 exploration and eight exploitation concessions, from Buccaneer Holdings Ltd.
Under the deal terms, Handa will have an exclusive right to conduct due diligence until April 18.
Upon Handa's election to acquire the project, it will issue 5 million shares to Buccaneer. If Handa decides to pursue development, it will issue an additional 7.5 million shares and pay US$3 million, with the first tranche of US$1.5 million payable six months from the development decision and the second tranche of US$1.5 million payable six months after.
Buccaneer will be entitled to a 1.5% royalty on revenue over the life of mine of the project once in production. Handa can buy back the royalty for US$8 million.
The transaction is subject to delivery of a National Instrument 43-101 report, and required regulatory and shareholder approvals.
