Canadian exploration and development company Los Andes Copper has acquired the rights for a 29 MW run-of-river hydropower project in Chile's Region V, HydroWorld.com has learned.
In addition to studies for the proposed hydroelectric plant, the memorandum of understanding gives Los Andes non-consumptive water rights to the Rocin River, which runs through the group's mining claims.
In return, Los Andes has agreed to issue 37,500,000 shares in its capital to Turnbrook Mining Ltd, which owns all of the issued and outstanding shares of Rocin SpA. Rocin SpA is the registed and beneficial owner of the hydropower project.
"The acquisition of the hydropower project will bring a number of important benefits to the company," a Los Andes release said. "Securing power at reasonable costs has become one of the key challenges for the mining industry in Chile, and the hydropower project will not only ultimately provide a portion of the power requirements for the company's mine at a very low cost, but will also provide Los Andes with a regular source of cash flow until the power is required by the company."
Los Andes said revenue generate by the mine will help fund the mine's preconstruction development and other projects.
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