Codelco Sells Unit Stake

Chilean state-run copper miner says it is selling a 66.0% stake of its Inca de Oro gold and copper project to Australian mining company PanAust for $55.3m in cash after receiving approval by presidential decree to do so. Codelco is retaining the remaining 34%. PanAust has also agreed to pay a net smelter return royalty to Codelco from revenues generated by the project. The royalty was capped at $30m. Codelco says a prefeasibility study shows that the Inca de Oro mine could produce about 50,000 tons of copper and 40,000 ounces of gold per year. Codelco executives were not available for comment.