Cascadero Copper Corporation has entered into an agreement to sell its 70% interest in Cascadero Minerals Corporation to Lumina Copper Corp. for US$15,000,000 in upfront cash and up to US$4,000,000 in deferred cash consideration.

Cascadero Minerals Corporation holds various mining rights in Salta Province, northwestern Argentina, including the La Sarita I, La Sarita II, La Sarita Sur II, Sarita Este, Francisco I, Francisco II, Desierto I, Desierto II, Sarita Sur, Amarillo, Viejo Campo, Demasia - La Sarita I, and Demasia - Sarita Sur properties.

Under the terms of the transaction, the deferred cash consideration includes US$2,000,000 payable within ten business days after Lumina or any affiliate makes a final investment decision to construct the Taca Taca project, and an additional US$2,000,000 payable within ten business days after US$100,000,000 has been incurred for its construction. At closing, Lumina will also settle approximately US$925,000 on behalf of Cascadero Copper Corporation, and the company will assume roughly $163,631 of debt owed to director Nelson Borch, who owns the remaining 30% of the subsidiary.

Prior to closing, Cascadero Copper Corporation will complete a corporate reorganization to retain its ownership interests in the seven properties comprising the Taron Cesium project, which include El Oculto, Centauro, Cerro Lari I, Cerro Lari II, Las Burras, Incahuasi, and Santa Rosa. Following completion of the transaction, the company will focus primarily on exploring and developing the Taron Cesium project in Argentina.

A Preliminary Economic Assessment for the Taron project, issued on May 15, 2024, estimated an after-tax net present value at a 10% discount rate of US$79 million with an internal rate of return of 14% and an upfront payback period of less than five years. The current transaction does not update those economic metrics.

Because the sale represents the disposition of substantially all of the company's undertaking, the transaction requires approval from at least 66⅔% of the votes cast by shareholders at a special meeting. Lumina has entered into voting and support agreements with certain shareholders holding approximately 47.9% of the outstanding common shares who have agreed to vote in favour of the sale. The transaction is also subject to TSX Venture Exchange approval and customary closing conditions.

Read the full announcement: Cascadero Copper Announces Sale of Cascadero Minerals Corporation