Flagship Minerals has renegotiated its option to acquire the Rosario copper-silver project in Chile, extending the agreement to October 2028 and cutting the final payment for 100 per cent ownership by half to US$1 million.
The revised deal with vendor Sociedad Minera Rajo SpA gives the company additional time to assess the high-grade project while directing capital towards its more advanced Isidora gold project, also in Chile’s Atacama region.
Flagship has paid US$100,000 for the current year and is due to make a further US$100,000 payment later this month. It can settle the payments in cash or shares, while the final option payment may also be made early, which would waive any remaining annual payments.
The agreement includes a one per cent net smelter royalty, which Flagship can buy back at an agreed price.
Rosario option extended to 2028
Rosario is located at an altitude of about 2,500 metres in the Diego de Almagro commune, in Chile’s Chañaral Province. The project lies 125 kilometres east of the coastal port of Chañaral and 10 kilometres north of Codelco’s El Salvador copper mine.
Previous exploration has identified three prospective trends with a combined estimated strike length of 15 kilometres. Surface rock-chip samples have returned copper grades of up to 8.9 per cent, while samples containing more than 0.75 per cent copper averaged 3.15 per cent copper and 18 parts per million silver.
Flagship managing director Paul Lock said the updated agreement reflected the relationship developed with Sociedad Minera Rajo and would allow the company to focus its spending on the areas expected to generate the greatest value.
“Flagship plans to conduct further work at Rosario once key milestones have been achieved at Isidora, ensuring the Company’s capital is applied where the most value per dollar spend will be generated,” Mr Lock said.
Isidora contains a JORC-compliant mineral resource of 115.2 million tonnes at 0.56 grams per tonne of gold, equivalent to 2.1 million ounces. Flagship is targeting a low-cost heap-leach operation and is progressing towards a prefeasibility study.
The company also holds the Whipsaw copper project in British Columbia, Canada. It is considering whether to spin the project out into a separately listed ASX vehicle, which could give existing shareholders a direct interest in the new company.
The renegotiated Rosario terms allow Flagship to retain exposure to the Chilean copper project while postponing much of the cost of securing ownership until after it has advanced its Isidora development plans.
