Vancouver —
The mine is currently owned equally by Atacama and Chilean-based ACF Minera. In return for ACF’s interest, Atacama will pay $11.2 million initially, plus $4.5 million within 12 months of closing.
The Vancouver-based company will also repay $4.3 million owed to ACF Minera, upon closing.
Aguas Blancas is in the Atacama Desert, 100 km from the port of Antofagasta. In addition to iodine, large deposits of sulphate and nitrate are present.
The mine started up in 2001 and currently produces more than 720 tonnes of high-grade iodine per year. Atacama plans to boost recoveries and bring a sodium sulphate circuit on-stream.
In 2004, Atacama had entered into a legal dispute with ACF related to an alleged breach of contract. Atacama said ACF failed to fund and construct a conversion of the processing operation from heap leach to mechanical leaching; the conversion was designed to increase annual iodine production to 1,500 tonnes.
Proven and probable reserves exceed 40 million tonnes grading 512 parts per million, or 0.05%, iodine, plus 22% sodium sulphate and 2.9% nitrates.
Deposits of iodine and nitrates in the arid Atacama region generally occur as caliche-type mineralization, and surface sediments are cemented with the evaporate salts.
Chile produces more than half the world’s iodine, which is used in industrial processes and medicine.
Atacama Minerals has 55.1 million shares outstanding and a market capitalization of $39 million. Shares recently traded at 70.
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