Cascadero Copper (TSX-V:CCD) has agreed to sell its 70% interest in Argentine mining company Cascadero Minerals as part of a transaction worth up to US$19 million ($26.58 million).
Lumina Copper, a wholly owned affiliate of First Quantum Minerals (TSX:FM), will acquire all outstanding Cascadero Minerals shares from Cascadero Copper and company Director Nelson Borch, who owns the remaining 30%.
The vendors will receive US$15 million at closing, subject to adjustments, and up to US$4 million in deferred payments. Proceeds will be divided according to their respective Cascadero Minerals interests.
The deferred consideration comprises US$2 million following a final investment decision on First Quantum’s Taca Taca Project and another US$2 million once US$100 million has been spent on its construction.
Cascadero Minerals holds or is acquiring mining rights across a portfolio of properties in Argentina’s Salta Province through Salta Geothermal and Arisaru Resources.
The portfolio includes La Sarita I, La Sarita II, and La Sarita Sur II, along with partial interests in the Francisco, Desierto, and Sarita Este properties.
At closing, Lumina will pay about US$925,000 on Cascadero Copper’s behalf to settle an outstanding third-party obligation, reducing Cascadero Copper’s share of the upfront proceeds. Cascadero Copper will also assume approximately $164,000 owed by Cascadero Minerals to Borch.
The transaction constitutes a sale of substantially all of Cascadero Copper’s undertaking and requires approval from at least 66⅔% of votes cast at a special shareholder meeting.
Lumina has secured voting agreements from shareholders representing about 47.9% of Cascadero’s outstanding shares on a partially diluted basis.
Closing remains subject to shareholder, regulatory, and TSX Venture Exchange approvals.
Before closing, Cascadero Copper says it will reorganise its holdings to retain seven properties forming the Taron Cesium Project. The company also plans to use part of the sale proceeds to continue evaluating Taron, which was the subject of a preliminary economic assessment issued in April 2024.
Cascadero Copper is a Canadian mineral explorer that will focus primarily on the Taron Cesium Project and its remaining exploration properties in Argentina following the proposed sale.
Write to France Pinzon at Mining.com.au
Images: Cascadero Copper
