Handa Mining Corporation signs joint venture agreement to develop copper processing plant in South Africa
Mining and development company Handa Mining Corporation has signed a joint venture agreement with O’Okiep Copper Company and SHIP Copper company to fund and build a processing plant that will recover copper from broken rock lying on the surface of properties held by the Property Owners located in the northern Cape Province of South Africa, approximately 600km north of Cape Town.
Handa will have 60 days to determine whether to proceed. In the event Handa proceeds, it will issue an aggregate of three and a half million common shares to the Property Owners, with one and a half million common shares being issued immediately and the remaining two million being issued following two years of production from the Plant.
For the first 24 months of production Handa would be entitled to 65% of any profits (as defined under Canadian IFRS) generated by the Plant. Following this period, Handa’s share in any profits would decrease to 33%. Handa will remain the owner and operator of the Plant.
The owners of the project will be responsible for all infrastructure and regulatory permits required to operate the plant.
Completion of the transaction is conditional upon the Board of Handa deciding to move forward on the transaction and securing predominantly debt funding for the project.