Indico Resources (TSX-V:IDI, StockForum), a Vancouver-based mineral exploration and development company operating in South-Central Peru, announced today that the company had signed a non-binding letter of intent with Qatar Mining (“QM”) regarding the development of the Ocana Copper Project located in the Arequina region of Peru.
QM will own 51% of the resulting JV company, with Indico owning the remaining 49% and the JV board will consist of three members appointed by QM and two members appointed by Indico.
According to the news release, “The LOI is intended to serve as a basis for the negotiation and execution of a definitive joint venture agreement. The completion of the joint venture is subject to a number of customary conditions precedent, including completion of due diligence, as well as the approval of the TSX Venture Exchange and all other required regulatory, corporate and security holder approvals.”
Indico president and CEO, Robert Baxter, commented on the agreement, “We are extremely pleased to have Qatar Mining enter into a Letter of Intent with Indico Resources to potentially develop the Ocaña Cu-Au-Mo project.”
Baxter then summed up, “Together with our major shareholder Stonehouse Constructions, we welcome the positive outcome of our discussions and negotiations that will allow us to develop the Ocaña project in a timely manner.”
Indico Resources was in the news recently when the company announced a $2.0 million private placement offering in the middle of November.
Shares rose 8.33% on the news to $0.13 per share.
Currently there are 70.9m outstanding shares with a market cap of $9.2 million.