Fitzroy Minerals Inc. (TSXV: FTZ, OTCQX: FTZFF, FSE: C3Y) announced it has signed a non-binding Letter of Intent with Sociedad Punta del Cobre S.A. (Pucobre) to outline a joint development pathway for the Buen Retiro Copper Project in Chile. The agreement includes Pucobre's intent to exercise its 30% claw-back right, contingent on continued positive technical results, and a firm offer to provide processing capacity at its Planta Biocobre electro-win facility.
The Planta Biocobre facility, located 70 km from Buen Retiro, has a nameplate capacity of 800 tonnes of copper cathode per month (9,600 tonnes annually) and is currently significantly underutilized. Fitzroy expects that access to this established infrastructure will reduce capital intensity, accelerate development timelines, and lower execution risk. Commercial terms for tolling or alternative processing are expected within 90 days, to be included in the upcoming Pre-Feasibility Study (PFS).
Pucobre has agreed to share real-world cost data from its nearby operations, including open-pit mining, processing, transport, and construction costs, to strengthen the reliability of the PFS assumptions. This collaboration is seen as a win-win: Pucobre fills spare capacity at its plant, improving operational economics, while Fitzroy gains access to an operational tank-house, reducing capital expenditure and simplifying permitting.
Fitzroy CEO Merlin Marr-Johnson stated, "The joint Letter of Intent is a major validation of the Buen Retiro Heap Leach project. Pucobre's claw-back right means that upon exercise in mid-2027, they would reimburse 90% of project expenditures incurred through completion of the Technical Report, making the next twelve months exceptionally capital-efficient for Fitzroy."
The LOI supports a dual-track strategy: development of oxide resources via heap-leach/SX-EW, and continued exploration of sulphide mineralization, which represents a longer-term value driver. Fitzroy plans to provide a separate exploration update concurrent with the PFS.
Under the original 2023 option agreement, Fitzroy can earn 100% of Buen Retiro by completing four steps by mid-2028, including at least 12,000 meters of drilling (already met), US$7 million in eligible expenses, delivery of a NI 43-101 compliant technical report, and a US$4 million bullet payment. Fitzroy anticipates completing all steps by Q2 2027. Upon completion, Pucobre intends to exercise its claw-back to acquire a 30% interest by paying 90% of eligible expenses (minimum US$10.2 million). A 2% net smelter royalty will be assigned to option holders, with Fitzroy able to buy back 1% for US$5 million before construction start.
Additionally, Fitzroy entered into an investor relations agreement with Stonegate Capital Partners, effective April 22, 2026, for a monthly fee of USD$3,000, subject to TSX Venture Exchange approval.
Pucobre CEO Sebastian Rios commented, "We are pleased to work with Fitzroy to advance Buen Retiro through a collaborative approach that leverages regional infrastructure and our operational experience. This partnership provides a strong framework to create long-term value for both companies."
For more information, visit the company's website at www.fitzroyminerals.com. An accompanying video discussing the news release can be viewed here.
