Glencore Canada and Falco Resources have entered a life-of-mine offtake agreement, wherein the latter will sell its copper and zinc concentrates to the global miner over 15 years, the estimated life of its Horne 5 project.
The global miner will also provide Falco with a $10mn bridge funding to subsidize the ongoing development of its Horne 5 operations which are located in Rouyn-Noranda, Québec.
According to a statement released by both companies on Tuesday, the funding will be mainly applied to Falco’s technical efforts, studies, and required demonstrations for continued risk reduction concerning the project and smelter. Funds will also be used for technical decisions or other issues and to promote further collaborations between both companies for a principal operating license and indemnity contract.
Project financials, economic analysis, and timeline plans are presently being developed by Falco’s management. The miner will continue finalizing work needed regarding governmental inquiries on filing an environmental impact study, and to begin the public consultation procedure by mid-to-late 2021.
Falco is among the largest mineral claim holders in Québec with the Horne 5 project its principal asset that produced 2.5bn lbs (1.13mn mt) of copper from 1927-1976. The Horne smelter is the only copper smelter in Canada since operations first began in 1927.