The grinding line in the Cobre Panama mill is nearing completion. (Image: First Quantum Minerals)
PANAMA – Toronto-based Franco-Nevada Corp. has agreed to acquire an additional precious metals stream from Korea Resources, holder of a 10% interest in the Cobre Panama copper-gold project in this country. Franco-Nevada will pay US$178 million for the additional ounces.
The terms are the same as those negotiated in 2015 with operator and 80% owner First Quantum Minerals of Toronto. To the end of 2017, Franco-Nevada has provided US$727 million under the original streaming agreement and has a balance of US$273 million.
The Cobre Panama project has measured and indicated resources of 3.7 billion tonnes grading 0.37% copper, 0.07 g/t gold, and 0.006% molybdenum plus inferred resources of 1.1 billion tonnes grading 0.26% copper, 0.04 g/t gold and 0.005% moly. Commercial production is expected later this year. Total cost of the project, including mine, concentrator, port and smelter, is slightly more than US$5.7 billion.
More information is posted at www.First-Quantum.com.