ABBOTSFORD, BC, Sept. 10 /CNW/ - ICS Copper Systems Ltd. (ICX:TSX.V) is
pleased to announce that it has signed a Heads of Agreement with two Zambian
companies that have a strategic relationship with each other, namely JV Civils
Ltd ("JVC") and Chantete Emeralds Ltd ("Chantete"). The principal operations
of these companies encompass bulk earthworks, plant hire, material
transportation, crushing and material handling mainly on the Zambian
Copperbelt.
Highlights of the agreement are:
- JVC/Chantete to finance the cost of installation of ICS's 270 cell
EMEW plant in Zambia.
- JVC/Chantete to advance USD 150,000 to ICS.
- JVC/Chantete to supply ore feed to ICS's EMEW plant. JVC/Chantete has
purchased concentrating equipment with the capacity to produce up to
6,000 metric tonne of a copper and cobalt concentrate per month and
is committed to having the first plant commissioned within four
months of the date of this agreement. Ore with a minimum grade of 10%
copper will be supplied. The potential exists to install similar
concentrators on five other targeted sites with a capacity to deliver
in excess of 18,000 metric tonnes per month within an 18 month
period.
- JVC/Chantete to be paid for this concentrate feed on a cost per tonne
basis.
- ICS to be paid a monthly "processing" fee covering owning and
operating costs of the plant.
- ICS to attend to the preparation of an Environmental Preliminary
Brief (EPB) and Environmental Impact Assessment (EIA).
- ICS to supply off-take agreements for the onward sale of the finished
copper and cobalt products.
- ICS and JVC /Chantete will share profits from the JV on a 50/50
basis.
ICS to undertake feasibility study for the installation of a larger SXEW
plant possibly with the capacity to process 6,000 to 18,000 tonnes per month
of copper concentrate with minimum grades of 10% copper. If this study is
positive and indicates acceptable returns ICS will undertake the financing of
this project.
About JVC
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JVC is a leading contracting company on the Zambian Copper Belt.
