On site operations ahead of the start of mining at EMED's (LON:EMED) Rio Tinto's mine are progressing and at lower costs than had been estimated.
The news sent shares up 14.29% in afternoon trade to 4p each.
The first stage will see mining operations at a rate of 5mln tonnes per year to produce 30,000 tonnes of copper.
In December EMED agreed a US$30mln unsecured bridge loan with its three largest shareholders to allow continued project development while a financing package is finalised to complete Phase 1 development.
It currently has cash of €10mln, which it presently expects is enough to complete negotiations of the global financing package without delays.
The latest capital forecast to complete Phase 1 development indicates the potential for up to US$50mln of savings are likely to be achieved, it said.
"We remain in advanced discussions with our funding partners and are confident of securing the financing for the re-start of production without delays to the company's anticipated timetable," said Alberto Lavandeira, chief executive.
He added: "We are very pleased by the rapid progress being made in the development of onsite operations and at costs that are trending well below original estimates."
Engineering and procurement is now complete, along with preliminary works at the tailings storage facilities.
The mining contractor is now on site and ready to operate and has acquired a new mining fleet that will be used for Phase 1 development.
In addition, infill drilling campaigns are in progress with over 10,000 metres drilled so far targeting a significant increase in open pittable reserves. Updated resources and reserves estimates are underway.