Fitzroy Minerals Inc. (TSXV: FTZ, OTCQX: FTZFF, FSE: C3Y) has executed a non-binding Letter of Intent (LOI) with Sociedad Punta del Cobre S.A. (Pucobre) outlining a potential joint development pathway for the Buen Retiro Copper Project in Chile. The LOI reflects the parties’ shared intention to work toward a development scenario that leverages existing regional infrastructure and operating experience.
Under the LOI, Pucobre confirms its intent to exercise its 30% claw-back right, subject to continued positive technical results, for the Buen Retiro Project including sulphide exploration potential. Additionally, Pucobre has made a firm offer to provide processing capacity at its Planta Biocobre Electro-Win (EW) facility, representing a minimum of 80% of its nominal capacity of approximately 800 tonnes of cathode copper per month. This access to established processing infrastructure is expected to reduce capital intensity, accelerate timelines, and lower execution risk compared to standalone processing scenarios.
The agreement also includes an open-book sharing of operating cost data from Pucobre's nearby mining and processing operations, providing real-world inputs for inclusion in the Heap Leach Pre-Feasibility Study (PFS). This data is expected to strengthen the reliability of capital and operating assumptions in the PFS.
Merlin Marr-Johnson, President and CEO of Fitzroy Minerals, commented: “The joint Letter of Intent is a major validation of the Buen Retiro Heap Leach project and is a win for both parties. Pucobre benefits by potentially securing production from the Buen Retiro Heap Leach to fill spare capacity at Planta Biocobre for many years, thereby significantly improving operational economics. Fitzroy benefits by having access to an operational EW tank-house, which reduces capital expenditure and simplifies the permitting process.”
The LOI recognizes a dual-track advancement strategy: development of oxide resources through heap-leach/SX-EW, and continued exploration of sulphide mineralization. Concurrent with the PFS publication, Fitzroy intends to provide an exploration update summarizing results from workstreams not incorporated into the initial mine plan.
Commercial terms for tolling or alternative processing arrangements are expected to be negotiated within approximately 90 days to support inclusion in the PFS economic model. The Planta Biocobre facility is located 70 km trucking distance from the Buen Retiro Project, and minor additions to the plant may be required to rehydrate copper sulphate concentrate.
Under the original mining option agreement, Fitzroy Minerals can earn 100% of Buen Retiro by completing four steps: at least 12,000 metres of drilling (already met), at least US$7 million in eligible expenses, delivery of a Final Technical Report, and a US$4 million bullet payment. Fitzroy anticipates completing all steps by Q2 2027. Upon completion, Pucobre intends to exercise its claw-back right to acquire a 30% interest by paying 90% of all eligible expenses (minimum US$10.2 million).
Sebastian Rios, CEO of Pucobre S.A., stated: “We are pleased to be working with Fitzroy Minerals to advance the Buen Retiro Project through a collaborative development approach that leverages regional infrastructure and our operational experience in the district.”
For more information, visit the Company's website: https://www.fitzroyminerals.com. An accompanying video discussing the news release can be found here.
