Daily News: February 22, 2017

BBVA to Arrange Amerigo Financing


Amerigo Resources, through its wholly-owned Chilean subsidiary, Minera Valle Central, has executed a financing mandate agreement with BBVA Chile and BBVA Securities.

The mandate agreement sets out an exclusive arrangement with BBVA describing the activities needed to arrange a loan facility for the second phase of the planned expansion of MVC’s operations for the processing of tailings from the historic Cauquenes.

BBVA has agreed to seek credit approval to provide up to 50% of the amount of the loan facility, and to act as mandated lead arranger and fronting hedge bank. The estimated cost of the Cauquenes Phase Two Expansion is $30 million, to be financed by the loan facility.

The Cauquenes Phase Two Expansion will consist of the installation of additional flotation cells and associated plant required to increase recovery rates and enable MVC to reach an estimated annual production of 87 million pounds of copper. Construction of Phase Two is expected to be completed in the second half of 2018.

Amerigo Resources is a copper producer with a long-term relationship with Codelco, the world’s largest copper producer.