Aur set to increase Andacollo interest

Aur Resources (AUR-T) has reached an agreement with the larger of the two minority shareholders in the Andacollo copper mine in Chile under which it can increase its interest in the project to 90% from its present 63%.

The deal, with Chilean partner Minera del Pacifico, sets a price of US$103 million for the 27% interest in Andacollo. Minera del Pacifico can exercise a put option at that price during the first half of January, or Aur can exercise a call option once Pacifico’s option expires or Pacifico gives notice it will not exercise the put.

Chilean state corporation Empresa Nacional de Mineria owns the other 10%.

Andacollo produces about 18,000 tonnes copper annually from a supergene deposit mined by open pit and processed by solvent extraction and electrowinning. A primary copper deposit, currently under development, is slated to produce 80,000 tonnes copper and 66,000 oz. gold annually from 2009.

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