Bastion Minerals, a junior mining company, has announced significant cost savings initiatives in Chile as it continues talks with Hot Chili regarding the potential acquisition of the Cometa copper project. The companies signed a binding letter of intent in August, granting Hot Chili the option to acquire the project, which is located near its own Costa Fuego copper/gold project.
The Cometa project comprises exploration and mining concessions covering an area of approximately 56 km2, situated approximately 15 km southeast of Costa Fuego’s planned operating center. It is also contiguous with Hot Chili’s existing landholdings in the region.
Hot Chili has a 60-day period to conduct due diligence on the Cometa project and enter into a definitive option agreement. If exercised, the option will extend for a 30-month period.
In light of these negotiations, Bastion Minerals has decided to rationalize employment contracts for its operating staff in Chile while Hot Chili conducts its due diligence exploration activities. The company anticipates that this move could result in approximately A$700,000 in annual savings.
Ross Landles, the executive chairperson of Bastion Minerals, stated, Following the recent binding letter of intent 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. We remain focused on creating value for our shareholders and are confident that the best way forward is to concentrate our efforts and funds towards exploring our Canadian lithium portfolio and rare earth element project in Sweden.
By focusing on optimizing its operations and reducing costs in Chile, Bastion Minerals aims to streamline its operations and allocate resources strategically to further its interests in other projects. The proposed acquisition of the Cometa copper project by Hot Chili presents an opportunity for both companies to strengthen their positions in the region and unlock potential synergies.
As discussions progress and the due diligence period unfolds, the mining industry eagerly awaits further updates on the potential acquisition and the future plans of Bastion Minerals and Hot Chili in Chile’s copper-rich landscape.
