South American copper explorer Metminco (LON:MNC ASX:MNC) is on the look-out for a new project to provide a cash flow source while it seaches for a partner for its Los Calatos flagship.
Metminco added it is actively assessing a number of potential opportunities and has taken out a facility with Bergen Global to provide funding for short term working capital of US$250,000 per month, with the possibility of increasing this to US$2mln per month in the event of an acquisition.
The Bergen agreement extends over a 24 month period. Its own cash resources were A$3.4mln (US$3.2mln) at the end of June.
At Los Calatos, talks with potential partners about establishing a joint venture are ongoing, Metminco added. Funding will be provided by the new party.
On the operations front, location of the access corridor for the Los Calatos pipeline to the coast is currently being finalised with the intention of lodging a Right of Access (Servidumbre) application during the current quarter.
The company added it had also recently re-evaluated the prospectivity of the broader Los Calatos project area and identified four drill-ready targets within two kilometres of the known deposit.
Exploration will focus on those targets, which are considered to have near surface potential, to supplement the open pittable resources already defined.
At Mollacas, work on the feasibility study has been delayed pending more clarity on mining access rights. The company recently appealed a ruling by the Chile Supreme Court.
William Howe, managing director, said: "The conclusion of a funding agreement with Bergen guarantees access to finance for the next 24 months to achieve our strategic objective of acquiring a project with a near term cash flow, as well as advancing our existing projects while at the same time minimising shareholder dilution."