New Pacific Metals Corp., subsequent to its press release of July 25, 2018, has announced that it has signed a Mining Production Contract, or the MPC, with Corporación Minera de Bolivia (COMIBOL), through its wholly owned subsidiary Empresa Minera Alcira S.A. (Alcira).
The MPC will give New Pacific Metals Corp. the right to perform activities related to exploration, mining, and production in the regions adjoining the company’s Silver Sand Project situated in the Potosí Department, Bolivia.
Bolivia’s Ministry of Mining and Metallurgy had approved the MPC on January 7th, 2019. A signing ceremony is scheduled to be held in Potosí on January 14th, 2019, which is expected to be graced by the Honorable César Navarro Miranda, the Minister of Bolivia’s Ministry of Mining and Metallurgy, Ing. Zelmar Andia, the President of COMIBOL, and Bernardo Peredo, Representative of the Embassy of Canada in Bolivia, among others. The MPC will be subject to ratification by the Plurinational Legislative Assembly of Bolivia, which the parties anticipate to get eventually.
Major Terms of the MPC
- An area of around 56.9098 km2, involving two isolated areas, is covered by MPC. The first area contains 29 Special Temporary Authorizations, or ATEs, situated directly west of Silver Sand, while the second area may contain an extra 201 cuadrículas or mining grids to the south, the north, and the east of Silver Sand.
- With a validity of 45 years, the MPC includes three phases of 15 years each. The MPC’s first phase will involve five years of exploration, and, if relevant, pre-feasibility and feasibility studies, engineering studies, environmental studies, and also development and pilot production. On the other hand, the second phase and the third phase of the MPC will cover the entire commercial production, mine closure, and environmental studies.
- During the initial five years of the MPC, Alcira will make a minimum investment of USD 5,935,000 for mineral exploration and associated activities.
- In case the commercial production begins, COMIBOL will get a 4% gross sales value of all minerals generated from the COMIBOL regions covered under the MPC.
We are very pleased to have reached this historic agreement with COMIBOL. This agreement adds significant exploration upside to our existing land holdings and raises the Silver Sand Project to a district scale operation.
Dr Rui Feng, CEO, New Pacific Metals Corp.
The MPC is a first of its kind agreement between a public resource company and the Bolivian government. I commend the Minister of Mines and Metallurgy and the President of COMIBOL for committed focus to complete this transaction. It is a benchmark achievement that shows that Bolivia is open to foreign investment.
Gordon Neal, President, New Pacific Metals Corp.
New Pacific Metals Corp. is preparing data on the work and drilling program performed on the Silver Sand project over the last few months and anticipates declaring the results in stages over the next several weeks.