Fitzroy Minerals and Pucobre Sign LOI to Advance Buen Retiro Copper Project

Fitzroy Minerals Inc. (TSXV: FTZ, OTCQX: FTZFF, FSE: C3Y) has signed a non-binding Letter of Intent (LOI) with Sociedad Punta del Cobre S.A. (Pucobre) to jointly develop the Buen Retiro Copper Project in Chile. The agreement outlines a dual-track strategy: advancing oxide resources through heap-leach/SX-EW processing, while continuing exploration of sulphide mineralization. Pucobre intends to exercise its 30% claw-back right, reimbursing 90% of project expenditures incurred through the Technical Report, making Fitzroy's work capital-efficient. Pucobre also offers processing capacity at its Planta Biocobre Electro-Win (EW) facility, which has a nominal capacity of 800 tonnes of cathode copper per month. This reduces capital expenditure and simplifies permitting for Fitzroy. Additionally, Pucobre will share real-world cost data from its nearby operations to strengthen the Pre-Feasibility Study (PFS). Fitzroy's CEO, Merlin Marr-Johnson, emphasized that the LOI validates the project and benefits both companies by optimizing infrastructure use and reducing costs.

The LOI supports a dual-track development and exploration strategy for Buen Retiro. For oxide resources, the plan leverages regional infrastructure, including Pucobre's Planta Biocobre SX-EW facility located 70 km away. The EW tank house is underutilized, and access to it is expected to reduce capital intensity, accelerate timelines, and lower execution risk. Commercial terms for tolling or alternative processing are to be negotiated within 90 days. For sulphide mineralization, exploration continues as a long-term value driver. Fitzroy will also provide a separate exploration update concurrent with the PFS publication.

Under the original mining option agreement, Fitzroy can earn 100% of Buen Retiro by completing four steps, including drilling, expenditures, a Final Technical Report, and a US$4 million payment. Fitzroy expects to complete these steps by Q2 2027. Pucobre's claw-back right would then allow it to acquire a 30% interest by paying 90% of all Eligible Expenses (minimum US$10.2 million). A 2% net smelter royalty will also apply, with Fitzroy having the right to buy back 1% for US$5 million. Finally, Fitzroy has engaged Stonegate Capital Partners for investor relations services. This partnership with Pucobre positions Fitzroy to advance the Buen Retiro project efficiently, leveraging existing infrastructure and expertise. For more details, see the original release on NEWMEDIAWIRE.