First Quantum heads for Chile

African copper producer First Quantum Minerals (FM-T) has inked a deal that will see it take up grass-roots exploration in the Chilean copper fields.

The deal with private Chilean company MN Ingenieros lets First Quantum earn a 75% interest in a group of copper prospects by spending US$2 million on exploration within three years. It must also bring at least one of the prospects to the pre-feasibility stage within five years.

At least US$300,000 must be spent in the first year of the agreement, and at least US$500,000 in the second year.

An area-of-influence agreement is part of the deal and specifies that in an area about 75 km wide by 180 km long surrounding the prospects covered by the deal, any additional prospects the partners acquire will be held 75% by First Quantum and 25% by MN.

The area of influence, which is centred about 120 km southeast of La Serena, covers the undeveloped Loica porphyry-copper deposit, but it is not covered by the agreement.