Fitzroy Minerals Inc. (TSXV: FTZ, OTCQX: FTZFF, FSE: C3Y) has executed a non-binding Letter of Intent (LOI) with Sociedad Punta del Cobre S.A. (Pucobre) outlining a potential joint development pathway for the Buen Retiro Copper Project in Chile. The LOI reflects a shared intention to work toward a development scenario that leverages existing regional infrastructure and operating experience, according to a company press release.
Under the LOI, Pucobre confirms its intent to exercise its 30% claw-back right for the Buen Retiro Project, subject to continued positive technical results, including the sulphide exploration potential. Additionally, Pucobre offers processing capacity at its Planta Biocobre Electro-Win (EW) facility, representing a minimum of 80% of its nominal capacity of approximately 800 tonnes of cathode copper per month. The facility, located 70 km trucking distance from the project, is currently significantly under-utilized.
Merlin Marr-Johnson, President and CEO of Fitzroy Minerals, stated: “The joint Letter of Intent is a major validation of the Buen Retiro Heap Leach project and is a win for both parties. Pucobre benefits by potentially securing production from the Buen Retiro Heap Leach to fill spare capacity at Planta Biocobre for many years, and thereby significantly improve operational economics by spreading fixed costs across more production units. Fitzroy benefits by having access to an operational EW tank-house which reduces capital expenditure and simplifies the permitting process.”
The LOI also includes an open-book sharing of operating cost data from Pucobre's nearby mining and processing operations to provide real-world inputs for inclusion in the Heap Leach Pre-Feasibility Study (PFS). This data is expected to materially strengthen the reliability of capital and operating assumptions.
Sebastian Rios, CEO of Pucobre S.A, commented: “We are pleased to be working with Fitzroy Minerals to advance the Buen Retiro Project through a collaborative development approach that leverages regional infrastructure and our operational experience in the district. We believe this partnership provides a strong framework to create long-term value for both companies while supporting efficient and disciplined advancement of the project.”
The LOI recognizes a dual-track advancement strategy for the Buen Retiro Project: development of oxide resources through a heap-leach/SX-EW pathway, and continued exploration of sulphide mineralisation, which remains a significant longer-term value driver. Commercial terms for tolling or alternative processing arrangements are expected to be negotiated within approximately 90 days to support inclusion in the PFS economic model.
Under the original mining option agreement dated January 1, 2023, Fitzroy Minerals can earn 100% of Buen Retiro by completing four steps, including at least 12,000 metres of drilling (already met), US$7 million in eligible expenses, delivery of a Final Technical Report, and a US$4 million bullet payment. Upon completion, Pucobre intends to exercise its claw-back right to acquire a 30% interest by paying 90% of all eligible expenses (minimum US$10.2 million).
The availability of established regional processing infrastructure is expected to reduce capital intensity assumptions, accelerate potential development timelines, and reduce execution risk relative to standalone processing scenarios. Fitzroy Minerals also entered into an investor relations services agreement with Stonegate Capital Partners on April 22, 2026.
