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Los Cerros (ASX:LCL) - Managing Director, Jason Stirbinskis - The Market Herald
Managing Director, Jason Stirbinskis
Source: Finance News Network
  • Los Cerros (LCL) has sold its remaining Chilean assets - the Loica and Vallecillo projects - as it pivots to focus on its Colombian portfolio
  • The company made the divestment through the sale of various subsidiaries to a Chilean buyer for US$100,000 (roughly A$137,500)
  • Further, Los Cerros liquidated its vestigial Peruvian subsidiaries which no longer held any assets
  • The company has also signed an agreement with FirstRand Investment HoldingsĀ to pay off its $3.5 million debt for a lesser $2.21 million
  • In addition, the agreement reduced the maximum royalty payments on the Quinchia gold project in Colombia from $15 million to $14 million
  • Company shares have dropped by 10.5 per cent to trade for 17 cents

Los Cerros (LCL) has sold the Loica and Vallecillo projects in Chile as it pivots to focus on its Colombian portfolio.

The company has beenadvancing its Quinchia gold project in Colombia which includes the Miraflores, Chuscal, Dosquebradas and Tesorito deposits and targets.

Leaving Chile

The company divested Loica and Vallecillo through the sale of its fully-owned subsidiaries, North Hill Ovalle and Minera Hampton Chile, to a Chilean buyer for roughly US$100,000 (roughly A$137,500)

The divestment removes Los Cerros' footprint from Chile, following the earlier sale of the Mollacas project in January for US$1 million (around A$1.3 million)

Further, Los Cerros has liquidated Cerro Norte Mining and North Hill Peru, its Peruvian subsidiaries, neither of which held any assets.

Paying off debt

The company has also signed a binding agreement with FirstRand Investment Holdings to pay off its $3.5 million debt for a lesser $2.21 million.

In addition, the agreement reduced the maximum royalty payments, from a two per cent net smelter royalty, for Quinchia from $15 million to $14 million.

The arrangements are, however, conditional upon completion of the company's $10 million capital raise, which it expects to be finalised later this month.

Company shares have dropped by 10.5 per cent to trade for 17 cents at 1:00 pm AEST.


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