TSX-V-listed mining and development company Handa Mining has signed a joint venture agreement to fund and build a processing plant to recover copper from broken rock lying on the surface of properties owned by O'Okiep Copper Company (OCC) and SHIP Copper in South Africa's Northern Cape.
Handa will have 60 days to determine whether to proceed with a transaction.
It it does proceed with the transaction, it will issue 3.5-million common shares to OCC and SHIP, with 1.5-million shares to be issued immediately and the remaining two-million shares to be issued following two years of production from the plant.
For the first 24 months of production, Handa will be entitled to 65% of any profits generated by the plant. Thereafter, its share in any profits would decrease to 33%.
Handa will remain the owner and operator of the plant.