TORONTO, ONTARIO--(Marketwired - April 2, 2015) - Mag Copper Limited ("Mag" or the "Company") (CSE:QUE) announced today that it has entered into a non-binding letter of intent (the "LOI") with AR2K Industries Ltd. ("AR2K") and J.S. Redpath Ltd. ("Redpath") to form a joint venture (the "JV") for the purpose of conducting a bulk sample on the Magusi Property (the "Property") and, depending on the results of the bulk sample, bringing the Property into commercial production.
The JV will be formed following the conclusion of a 90 business day due diligence period. AR2K will act as the Project Manager and Redpath will act as the Operator. The LOI contemplates the parties entering into a definitive agreement which will provide for the preparation of a mine plan, which will include detailed costing estimates; permitting and completion of a bulk sample, the cost of which shall be borne by Mag. Assuming positive completion of the initial phase of work, AR2K and Redpath will commence underground production, the cost of which shall be borne by Mag. In consideration of AR2K and Redpath providing their services at cost, all parties shall share in net smelter profits at an agreed percentage to be negotiated in good faith. The JV will be managed by a management committee consisting on one nominee from each of AR2K and Redpath and two nominees from Mag.
Investors are cautioned that completion of the proposed transaction is subject to certain conditions including, without limitation, the settlement of the terms and execution of a definitive agreement among the parties; completion of satisfactory due diligence; receipt of all necessary board approvals; receipt of all necessary consents, waivers, permits, exemptions, orders and approvals, receipt of all applicable regulatory and stock exchange approvals and certain other customary consents.
The bulk sample will be designed to determine the potential for commercializing the Property. No assurance can be given that the anticipated level of recovery and/or grades of mineral resource will be realized. In addition, any bulk sample and/or initiation of commercial production at the Property requires permits, licenses and approvals from government authorities and there is no assurance the Company will be able to obtain the necessary permits, licenses and approvals.
About Redpath
Having performed work in more than 30 countries since 1962, The Redpath Group provides comprehensive services and experienced mine development with an international team of highly skilled professionals committed to safety and quality. The company is renowned for meeting all challenges and delivering practical innovative solutions. Regional offices are located on six continents: AUSTRALIA - Brisbane and Perth; CANADA - North Bay, Red Lake, Rouyn-Noranda, Sudbury and Timmins; CHILE - Santiago; GERMANY - Dortmund; INDONESIA - Jakarta and Tembagapura; MONGOLIA - Ulaanbaatar; SOUTH AFRICA - Johannesburg; UNITED STATES - Reno; ZAMBIA - Lusaka.