PROJECT UPDATE: Anfield Signs Purchase Agreement with Blue Zen Memorial Parks
Anfield Resources (TSXV:ARY) inked a deal to support a multi-stage plan that will allow it to advance its Arizona-based copper project, Binghampton Copper Queen, and bolster its position in the junior resource space.
Anfield Resources (TSXV: ARY) inked a deal to support a multi-stage plan that will allow it to advance its Arizona-based copper project, Binghampton Copper Queen, and bolster its position in the junior resource space. The deal, which is pending due diligence, will give Anfield the opportunity to advance the copper project through to production via an offtake agreement. The first stage of the agreement includes an investment by Blue Zen of $2 million that will be used to fund Binghampton Copper Queen's NI 43-101 resource estimate by no later than May 15, 2014. Depending on the results of the resource estimate, Anfield will then sell 50 percent of the Binghampton Copper Queen project to Blue Zen. The company has also given Blue Zen first right of refusal in regards to the Binghampton Copper Queen project's production offtake agreement. Corey Dias, Anfield's CEO, believes that with Blue Zen, his company has found a partner that can help it significantly advance the Binghampton Copper Queen project to its production state. "Moreover," Dias states in today's press release, "Anfield's success in negotiating a production off-take agreement places it in a unique position vis-a-vis many of its junior resource peers, as such an agreement — which can be used as collateral to secure debt lending for project capex, a crucial component of the building of a mine — materially increases the likelihood that a project would reach the production stage." The deal has the potential to change the face of Anfield Resources moving forward. If Anfield can meet the qualifications, it will find itself transitioning from a junior development company to a prospective future producer. In a note to Copper Investing News, Dias highlighted that "while there are more advanced-stage junior resource companies, Anfield has the benefit of an off-take agreement," a harder milestone for a junior resource company to achieve.