Andean Precious Metals Corp. (TSX: APM, OTCQX: ANPMF) has taken a significant step in enhancing its operational capabilities by entering into an exclusive Sale and Purchase Agreement (SPA) with Empresa Minera Trapiche S.R.L. This agreement allows Andean to purchase up to 100,000 dry tonnes of oxide material sourced from the Trapiche mining concession, located in the Municipality of San Pablo de Lipez in Bolivia’s Potosí Department.
The Trapiche Concession is recognized as an undeveloped epithermal silver and base metal deposit, situated approximately 140 km northeast of Uyuni and about 250 km southwest of Andean’s existing San Bartolomé mine. The SPA outlines specific terms for the delivery and quality assurance of the mineral material. The initial delivery will comprise 28,000 dry tonnes within three months, with the full volume expected to be delivered within one year.
The agreement outlines several key aspects, including delivery terms and quality control measures. The mineral will be transported to a designated collection area at Trapiche’s mining site, where both parties will work together on weight verification; final sampling and grade assessments will take place at Manquiri’s accredited laboratory. Additionally, Manquiri reserves the right to reject any material that fails to meet the agreed minimum grade of 180 grams per dry tonne, and both parties must comply with national environmental and safety regulations as well as international anti-corruption laws.
The financial framework of the agreement is tied to the silver content within the oxidized mineral. This strategic move aims to bolster Andean’s supply chain and address production gaps that have emerged from recent operational challenges. Alberto Morales, Chairman and CEO of Andean, emphasized that this agreement is a proactive measure to secure new ore sources, aligning with the company’s goal to maintain production levels consistent with historical averages.
This exclusive agreement is part of Andean’s broader strategy to enhance its operational efficiency and sustainability in Bolivia. The company has been focused on transitioning towards a model that prioritizes processing third-party materials. This shift is crucial as Andean looks to optimize its resources amid fluctuating market conditions.
Andean Precious Metals operates two primary assets: the San Bartolomé processing facility in Bolivia and the Soledad Mountain mine in California. The San Bartolomé plant is recognized as the largest oxide processing facility in Bolivia, with a designed capacity of 1.8 million tonnes per annum. Since its inception in 2008, it has produced an average of 5 million ounces of silver equivalents annually.
With this new agreement, Andean will be positioned to enhance its resource base significantly while ensuring compliance with environmental standards and community engagement. The company’s leadership remains committed to fostering responsible mining practices and creating value for stakeholders.