Cornish Minerals Limited, the parent company of mine operator Western United Mines Limited (WUM), has announced that Stage 1 of an earn-in agreement with Canada-based Celeste Copper Corporation has been completed.
The agreement means that Celeste has acquired an 18% interest in the development of South Crofty mine, and Norman Brewster, president and CEO of Celeste, will take a seat on the Cornish Minerals’ board.
WUM chief executive Alan Shoesmith said: “I am delighted that we have successfully concluded the first stage of the earn-in agreement and look forward to working closely with our colleagues at Celeste.
“This is a very exciting milestone in South Crofty’s progress towards production.
“Mr Brewster brings a wealth of experience and technical ability to the South Crofty project and his abilities will assist greatly in the challenges ahead.”
Brewster added: “We are very pleased to have achieved this stage of financing and are excited by the prospect of advancing South Crofty’s exploration programme.”
As announced earlier in the year, Celeste entered into an earn-in agreement with Cornish Minerals to acquire an eventual 60% equity interest – with the ability to go to 100% based on a valuation after having earned the 60%.
Stage 1 aimed to achieve up to 25% interest. The remaining 7% Stage 1 balance is expected to be completed soon.