Plexmar Teams Up With Peruvian Company for Bolsa Del Diablo Project
Plexmar Resources Inc. report that it has signed, through its subsidiary, a letter of intent with Minera Ucucha S.A.C. for the exclusive commercialization and production rights for the top 100 meters on all the concessions part of the Bolsa del Diablo project. In return, Ucucha will obtain all necessary authorizations from the local communities to allow free and undisturbed exploration for the duration of the agreement, and, will give Plexmar a 10% royalty from all mineral extracted and commercialized from its concessions.
Following the final contract signatures, Ucucha has a maximum of 60 days to obtain community approval to resume exploration.
Ucucha is a successful Peruvian mining company that operates 3 processing plants in Southern Peru. Ucucha will produce, in 2008, over 10,000,000 lbs of copper concentrate for total revenues of approximately $US 8 millions. They have extensive experience and a very successful track record in dealing with informal miners and communities. Ucucha shares the same management as Iimpul Peru S.A., one of the largest Peruvian buyer and exporter of artisanal gold. In 2007, Iimpul had revenues of over $120M US and is one of the top 157 Peruvian companies. Ucucha has long term sales agreement with Louis Dreyfus Commodities Metals, one of the world’s leading commodity merchants, merchandising and trading bulk commodities in international markets since 1851.
“We are extremely pleased to team up with a successful company like Ucucha. They are experts in dealing with community related informal mining. They will quickly obtain the permission to explore while helping the informal miners increase their production in a safe and efficient way” says Guy Bedard, president.
The agreement is for a 10 year duration and all contractual clauses will be reviewed every two years. The final agreement is currently being drafted and is expected to be signed within 10-15 business days. This agreement is subject to the approval of the regulatory authorities.
