PERTH (miningweekly.com) – Junior Bastion Minerals has unveiled cost-saving initiatives in Chile amid its talks with fellow-listed Hot Chili regarding the acquisition of the Cometa copper project.
The two companies in late August signed a binding letter of intent (LoI) giving Hot Chili the option to acquire the Cometa project, which is near Hot Chili’s own Costa Fuego copper/gold project.
Cometa consists of exploration and mining concessions covering approximately 56 km2 in an area located approximately 15 km southeast of Costa Fuego’s planned operating centre and contiguous with Hot Chili’s landholdings in the region.
Hot Chili has 60 days in which to conduct a due diligence on the project and to enter into a definitive option agreement, and has a 30-month period in which to exercise the option.
Bastion on Wednesday said that the company would rationalise employment contracts for operating staff in Chile while Hot Chili conducted its due diligence exploration activities, which could result in yearly savings of around A$700 000.
“Following the recent binding LoI to divest our Cometa copper project to Hot Chili for up to $3.3-million, the board believes it is prudent capital management to now manage its Chilean operations solely via consultants which will significantly reduce the current expenses incurred by our in-country permanent staff,” said Bastion executive chairperson Ross Landles.
“We remain focused on creating value for our shareholders, and we are confident that the best way forward is to concentrate our efforts and our funds towards exploring our Canadian lithium portfolio, and our rare earth element project in Sweden.”