09/10/2012 - 11:08

Helix signs $19.5m agreement with Mitsubishi

09/10/2012 - 11:08

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Helix Resources has signed an agreement with Japan’s Mitsubishi Materials Corporation for the development of the Joshua copper project in Chile that could be worth up to $19.5 million.

Helix announced today it had signed a memorandum of understanding with Mitsubishi, to complete the transaction in two tranches.

The first phase would see Mitsubishi fund $4.5 million of exploration activities at Joshua over the next 18 months, in return for a 20 per cent joint venture interest.

Following completion of phase one, Mitsubishi will have the right to earn up to a 50 per cent joint venture interest in return for $15 million in development funding.

Helix and Mitsubishi expect a formal contract to be signed before the end of the month.

Helix chairman Greg Wheeler said the Joshua project had significant potential and welcomed Mitsubishi’s support.

“This deal illustrates the unrecognised value in our mineral asset portfolio and we will continue to seek industry partners to advance and monetise this value,” Mr Wheeler said in a statement.

At 11:00AM, WST, Helix shares were steady at 4.6 cents.

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