In response to a flood of inbound enquiries, AuTECO Minerals Ltd (ASX:AUT, OTC:MNXMF) has announced its intention to hold discussions with third parties interested in the Green Bay Copper-Gold Project in Newfoundland, Canada.
Invaluable expertise
To assist with the negotiations, the company has appointed experienced resources executive David Southam.
Southam, who has extensive experience in negotiating multi-billion-dollar offtake arrangements, will advise the company during these discussions.
He has previously served as managing director of Mincor Resources Ltd, where he led the company’s return to the ranks of Australian nickel producers within a three-year period, attracting cornerstone investor Wyloo Metals – which subsequently purchased 100% of Mincor – base metal project financing and construction of the underground Kambalda Nickel Operations.
He also has substantial experience in capital markets and mergers and acquisitions.
Incoming managing director Steve Parsons said: “David's understanding of base and battery metals, large offtake agreements and assessing cornerstone investors will be invaluable as we discuss these opportunities for Green Bay.”
Surge in interest
Since disclosing its agreement to acquire the Green Bay project last month, AuTECO has seen a significant uptick in interest. The company is in the preparatory stages of a growth strategy that includes a 40,000-metre underground drilling campaign and a 700-metre exploration drive.
The project, aimed at expanding the existing high-grade resource of 39.2 million tonnes at 2.1% copper equivalent (CuEq) for 811,000 tonnes CuEq, will be financed through a recent A$55 million share placement and a share purchase plan of up to A$3 million.
“The immense interest in Green Bay from potential customers and other major industry participants reflects the quality of the asset, its strong growth outlook and tier-one location,” Parsons said.
“The global scramble for energy transition metals is gaining pace and the competition to secure exposure to quality assets such as Green Bay is clearly intense.
“This presents an opportunity for AuTECO to consider structures which may enable us to unlock the value of the asset in an expedited manner.”
The Green Bay Project, which can be found in a top global mining investment jurisdiction, already boasts a significant high-grade copper resource. The project comprises multiple assets, including the operational Ming underground mine and the Nugget Pond processing plant.
AuTECO aims to rapidly grow this resource through its planned investment in drilling, facilitated by existing infrastructure.