Inca One Resources (IO.V) has announced last Friday they acquired a small mill in Chala, Peru which is about 630km southeast of Lima. The mill is currently operating and recovers approximately 90 to 92% of the oxide ore it’s currently processing.
The mill facility currently has a capacity of 25tpd, and Inca One will upgrade this immediately to 50 tonnes per day by installing a new ball mill and flotation tanks. The company will also immediately apply for permits to increase the capacity even further to 350tpd.
Inca One expects to start toll milling high grade ore as soon as they secure the mill feed. According to the company there is an abundance of high-grade ore on the properties of artisanal miners who don’t own a mill.
The purchase of the processing facility will be financed with a debt issue, as Inca One is currently raising C$600,000 with a (partial) convertible debt offering. The bonds, which will be sold in units of C$25,000, will have a 10% coupon (paid quarterly) and will mature in 5 years from now.
> Click here to read the press release
Disclosure: The author holds a long position in Inca One Resources. Inca One is a sponsor of the website. Please see our disclaimer for current positions.
