(All amounts in US$ unless otherwise specified
and reflect 100% of the project)
Capstone Mining Corp. (“Capstone” or the “Company”) (TSX:CS)
announces its 70% owned subsidiary Minera Santo Domingo (“MSD”) has
entered into a memorandum of understanding (“MOU”) with Puerto
Abierto S.A. (“PASA”) a wholly owned subsidiary of Puerto Ventanas
S.A. (“Puerto Ventanas”) (subsidiary of Sigdo Koppers S.A.) for
Capstone’s Santo Domingo project in Region III, Chile (“Santo
Domingo” or the “Project”). During a 90 day period, both MSD and
PASA will together explore mutual synergies and regional benefits
for the proposed port component of the Santo Domingo Project,
Puerto Santo Domingo (the “Port”). The Port is fully permitted and
located 100 kms from the Santo Domingo project site (see Figure 1).
It will be one of only two Cape-size vessel ports in the region,
making it an attractive site for bulk shipments and a key asset
allowing for broad resource development in Region III of Chile.
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FIGURE 1: The Region III District in
Chile has enormous potential for copper and iron ore mine
development. Capstone's Santo Domingo is located in the middle of
this growing mining district. (Graphic: Business Wire)
MOU DETAILS
MSD will allow PASA to study, at its own cost, during a term of
90 days, the Project engineering and conduct a market study. PASA
is looking to potentially acquire, construct, operate and maintain
the deep-water Port, including financing its development. Once in
operation, Santo Domingo will receive preferred service as its
volumes will represent a baseload of business for the Port. The MOU
also gives PASA 90 days to evaluate the replacement of the 110 km
magnetite concentrate pipeline with a railway as part of its rail
business, Ferrocarril del Pacifico S.A. (FEPASA). The Santo Domingo
project infrastructure that is under consideration in this MOU
represents approximately $400 million of the CAPEX identified in
the most recent NI 43-101 Technical Report and includes:
- Marine works including pier
- Iron concentrate pipeline from Santo Domingo Mine to Port
- Magnetite filter plant and stockpile building
- Copper storage building
- Ship loading and support facilities.
“Over the past three months we have seen a surge in interest in
our fully permitted Santo Domingo project,” said Darren Pylot,
President and CEO of Capstone. “I believe this relationship with
Puerto Ventanas will serve as a major catalyst for our Santo
Domingo Project. Our path forward includes successful culmination
of the strategic sales process, executing a gold stream agreement
and arranging project debt financing.”
“A partnership with PASA would simplify the Santo Domingo
project as we would focus on construction and operational ramp-up
of the mine site only, lowering our upfront capital requirements
and allow each company to focus on their core business,” said Dr.
Albert Garcia, VP, Projects at Capstone. “This, coupled with the
fixed cost, turn-key proposal from POSCO E&C, an
internationally recognized, reputable EPC contractor for the mine
site, significantly de-risks the overall Project.”
“The signing of this MOU is a great opportunity for Puerto
Ventanas to work with Capstone and to contribute our expertise
providing port services and railway cargo solutions. Our track
record is internationally recognized in the logistic services and
we are confident that we can contribute to the success of the
development of Minera Santo Domingo,” said Juan Eduardo Errázuriz,
Chairman at Puerto Ventanas.
“We are looking forward to working with Capstone to offer them
the best technical and economical solution for MSD logistics
needs,” said Jorge Oyarce, CEO at Puerto Ventanas.
FIGURE 1: The District has enormous potential for copper and
iron ore mine development
ABOUT PUERTO ABIERTO S.A.
PASA is a part of the Chilean conglomerate Sigdo Koppers S.A.,
who has operations in five continents and its business activities
are organized into three business areas: mining; industrial
construction, transportation and logistics; and machinery and car
distribution. https://puertoventanas.cl/en/
ABOUT CAPSTONE MINING CORP.
Capstone Mining Corp. is a Canadian base metals mining company,
focused on copper. Our two producing mines are the Pinto Valley
copper mine located in Arizona, US and the Cozamin copper-silver
mine in Zacatecas State, Mexico. In addition, Capstone owns 70% of
Santo Domingo, a large scale, fully-permitted, copper-iron-gold
project in Region III, Chile, in partnership with Korea Resources
Corporation, as well as a portfolio of exploration properties.
Capstone's strategy is to focus on the optimization of operations
and assets in politically stable, mining-friendly regions, centred
in the Americas. We are committed to the responsible development of
our assets and the environments in which we operate. Our
headquarters are in Vancouver, Canada and we are listed on the
Toronto Stock Exchange (TSX). Further information is available at
www.capstonemining.com.
COMPLIANCE WITH NI 43-101
Unless otherwise indicated, Capstone has prepared the technical
information in this news release based on information contained in
the technical reports and news releases (collectively the
“Disclosure Documents”) available under Capstone Mining Corp.’s
company profile on SEDAR at www.sedar.com. Each Disclosure Document
was prepared by or under the supervision of a qualified person (a
“Qualified Person” or “QP”) as defined in National Instrument
43-101 – Standards of Disclosure for Mineral Projects of the
Canadian Securities Administrators (“NI 43-101”). For readers to
fully understand the information in this news release, they should
read the Technical Reports (available on www.sedar.com) in their
entirety, including all qualifications, assumptions and exclusions
that relate to the information set out in this presentation which
qualifies the Technical Information. Readers are advised that
mineral resources that are not mineral reserves do not have
demonstrated economic viability. The Disclosure Documents are each
intended to be read as a whole, and sections should not be read or
relied upon out of context. The Technical Information is subject to
the assumptions and qualifications contained in the Disclosure
Documents. For further details refer to the Company’s NI 43-101
Technical Report Santo Domingo Project, Region III, Chile,
Feasibility Study Update, published March 24, 2020, effective
February 19, 2020. The Technical Information in this news release
has been prepared in accordance with NI 43-101 and reviewed and
approved by Albert Garcia III, PE, Vice President, Projects, a
Qualified Person as defined in NI 43-101.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This news release, and the documents incorporated by reference
herein, contains “forward-looking information” within the meaning
of Canadian securities legislation and “forward-looking statements”
within the meaning of the United States Private Securities
Litigation Reform Act of 1995 (collectively, “forward-looking
statements”). These forward-looking statements are made as of the
date of this document and Capstone Mining Corp. (“Capstone” or the
“Company”) does not intend, and does not assume any obligation, to
update these forward-looking statements, except as required under
applicable securities legislation. Forward-looking statements
relate to future events or future performance and reflect our
expectations or beliefs regarding future events. Forward-looking
statements include, but are not limited to, statements with respect
to the continuing success of mineral exploration, Capstone’s
ability to fund future exploration activities, the estimation of
mineral resources and mineral reserves, the realization of mineral
reserve estimates, the timing and amount of estimated future
production, costs of production and capital expenditures, the cost
of capital expenditures for the Santo Domingo Project, our ability
to separate any permits required for the Port if necessary, the
success of our mining operations, the estimation of increased
cathode production, the ability to obtain required permits for the
intended expanded leaching activity, the estimation of the expected
economics of the expanded leaching activities, the estimations for
potential quantities and grade of inferred resources and
exploration targets, environmental risks, unanticipated reclamation
expenses and title disputes. In certain cases, forward-looking
statements can be identified by the use of words such as “plans”,
“expects”, “aiming”, “approximately”, “guidance”, “scheduled”,
“target”, “estimates”, “forecasts”, “extends”, “convert”,
“potential”, “intends”, “anticipates”, “believes” or variations of
such words and phrases, or statements that certain actions, events
or results “may”, “could”, “should”, “would”, “will”, “might” or
“will be taken”, “occur” or “be achieved” or the negative of these
terms or comparable terminology. By their very nature,
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause our actual results,
performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by
the forward-looking statements. Such factors include, amongst
others, permitting risks related to the Port, risks related to
inherent hazards associated with mining operations and closure of
mining projects, the inherent uncertainty of mineral exploration
and estimations of exploration targets, potential delays in
exploration or interruption of production directly or indirectly
related to COVID-19 or governmental action, future prices of copper
and other metals, compliance with financial covenants, surety
bonding requirements, our ability to raise capital or fund
explorations, Capstone’s ability to acquire properties for growth,
counterparty risks associated with sales of our metals, foreign
currency exchange rate fluctuations, changes in general economic
conditions, risks associated with hedging strategies, accuracy of
mineral resource and mineral reserve estimates, operating in
foreign jurisdictions with risk of changes to governmental
regulation, compliance with governmental regulations, compliance
with environmental laws and regulations, reliance on approvals,
licences and permits from governmental authorities, impact of
climatic conditions on our operations, aboriginal title claims and
rights to consultation and accommodation, land reclamation and mine
closure obligations, uncertainties and risks related to the
potential development of the Cozamin project, increased operating
and capital costs, challenges to title to our mineral properties,
maintaining ongoing social license to operate, dependence on key
management personnel, potential conflicts of interest involving our
directors and officers, corruption and bribery, limitations
inherent in our insurance coverage, labour relations, increasing
energy prices, competition in the mining industry, risks associated
with joint venture partners, our ability to integrate new
acquisitions into our operations, cybersecurity threats, legal
proceedings, and other risks of the mining industry as well as
those factors detailed from time to time in the Company’s interim
and annual financial statements and MD&A of those statements,
all of which are filed and available for review under the Company’s
profile on SEDAR at www.sedar.com. Although the Company has
attempted to identify important factors that could cause our actual
results, performance or achievements to differ materially from
those described in our forward-looking statements, there may be
other factors that cause our results, performance or achievements
not to be as anticipated, estimated or intended. There can be no
assurance that our forward-looking statements will prove to be
accurate, as our actual results, performance or achievements could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on our
forward-looking statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200916005274/en/
Jerrold Annett, VP, Strategy and Capital Markets 416-572-2272
jannett@capstonemining.com
Virginia Morgan, Manager, IR and Communications 604-674-2268
vmorgan@capstonemining.com
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