Fitzroy Minerals Inc. (TSXV: FTZ, OTCQX: FTZFF, FSE: C3Y) has executed a non-binding Letter of Intent (LOI) with Sociedad Punta del Cobre S.A. (Pucobre) to outline a potential joint development pathway for the Buen Retiro Copper Project in Chile. The LOI signals a shared intention to work toward a development scenario that leverages existing regional infrastructure and operating experience, marking a significant step forward for the project.
Under the LOI, Pucobre confirms its intent to exercise its 30% claw-back right, subject to continued positive technical results, covering both the heap leach oxide resources and the sulphide exploration potential. Additionally, Pucobre has made a firm offer to provide processing capacity at its Planta Biocobre Electro-Win (EW) facility, representing a minimum of 80% of its nominal capacity of approximately 800 tonnes of cathode copper per month. The facility, located 70 km from the Buen Retiro Project, is currently significantly under-utilized, offering Fitzroy access to established infrastructure that is expected to reduce capital intensity, accelerate development timelines, and lower execution risk.
Merlin Marr-Johnson, President and CEO of Fitzroy Minerals, commented: “The joint Letter of Intent is a major validation of the Buen Retiro Heap Leach project and is a win for both parties. Pucobre benefits by potentially securing production from the Buen Retiro Heap Leach to fill spare capacity at Planta Biocobre for many years, thereby significantly improving operational economics by spreading fixed costs across more production units. Fitzroy benefits by having access to an operational EW tank-house which reduces capital expenditure and simplifies the permitting process.”
The LOI also includes an open-book sharing of operating cost data from Pucobre's nearby mining and processing operations, providing real-world inputs for inclusion in the Heap Leach Pre-Feasibility Study (PFS). These data, covering open-pit mining costs, processing costs at Planta Biocobre, transport cost benchmarks, and construction and development experience, are expected to materially strengthen the reliability of capital and operating assumptions in the PFS.
Sebastian Rios, CEO of Pucobre S.A, stated: “We are pleased to be working with Fitzroy Minerals to advance the Buen Retiro Project through a collaborative development approach that leverages regional infrastructure and our operational experience in the district. We believe this partnership provides a strong framework to create long-term value for both companies while supporting efficient and disciplined advancement of the project.”
The LOI recognizes a dual-track advancement strategy: development of oxide resources through a heap-leach/SX-EW pathway, supported by regional infrastructure and the planned PFS, and continued exploration of sulphide mineralisation, which remains a significant longer-term value driver. Commercial terms for tolling or processing arrangements are expected to be negotiated within approximately 90 days to support inclusion in the PFS economic model.
Fitzroy Minerals can earn 100% of the Buen Retiro Project by completing four steps under the original mining option agreement dated January 1, 2023. These include at least 12,000 metres of drilling (already met), at least US$7 million in eligible expenses, delivery of a Final Technical Report (including a PFS and Measured and Indicated Resource), and a US$4 million bullet payment. Fitzroy anticipates completing all steps in Q2 2027. Upon completion, Pucobre intends to exercise its claw-back right to acquire a 30% interest by paying 90% of eligible expenses, which are expected to be at least US$10.2 million.
This alignment of interests creates a strong platform for advancing both near-term development of oxide resources and continued exploration of the broader sulphide potential at Buen Retiro. The availability of established regional processing infrastructure is a key enabler, reducing capital expenditure and simplifying the permitting process. For more information, visit Fitzroy Minerals' website at www.fitzroyminerals.com.
