BHP bets billions on Chile mines to face global copper crunch
BHP detailed to investors this week plans to spend $10.7 billion to $14.7 billion within about 10 years.
Stock in Marifil Mines (CVE:MFM) shot up 17.9% Monday after the Vancouver company announced it is acquiring the Filo Morado potash property in Argentina.
Filo Morado, which has since been renamed K-5, is just over 30,000 hectares and comprises 14 claims. Under terms of the agreement, Marifil paid $25,000 on signing and will pay $125,000 after the end of a due diligence period, $150,000 after six months, $175,000 after two years, $200,000 in 30 months, and $2.4 million after 4 years.
According to Marifil, the property borders claims owned by Vale’s 2+ billion-tonne Potasio Rio Colorado potash deposit and the El Porton potash deposit owned by K+S.
K+S is the German fertilizer giant that recently approved C$3.2 billion for building a new potash mine in Saskatchewan, Canada.
Marifil said in a news release that potash mineralization has been identified in seven horizons ranging in depth from 1000 to 1100 metres. The mineralization stretches 5 kilometres wide at a strike length of about 20 kilometres.
“This acquisition may be a real game changer for Marifil and is one we worked for nearly one year to acquire, ” says President John Hite. “We have identified multiple high grade sylvite (KCl) horizons with mineable thicknesses over an area of 80 to 100 square kilometers. These horizons should be extremely amenable to solution mining. By adding the K-5 we have become the second largest potash claim owner in the Neuquen Basin.”
