los calatos tenements, page-4

This particular tenement is a strategic one for MNC as it is adjacent to the one which hosts the Los Calatos orebody; even if the tenement turns up not to host any mineralisation it is always desirable to have the project infrastructure close to the orebody to minimise operating costs.

Generally the tenement would be less valuable to those companies that do not own adjacent tenements, as 900 hectares would most likely be insufficient real estate to develop a stand alone project. This tenement would have been more valuable to Teck than to the other 6 bidders (bar MNC) as it holds one neighbouring tenement.

The size of the bid that Peñoles put in despite not having any adjacent tenement demonstrates it has a high interest in the area. The only reason I see for this is that it would put it in a better position against other suitors were it to bid for MNC as it would hold the missing piece of the puzzle.

Peñoles is a mid tier miner which is actively exploring in Peru and Chile for porphyry copper deposits. It hold the Racaycocha project in Peru.

I see this very high bid put in place by Peñoles as a hostile move on MNC and can understand MNC seeking to put in place a takeover strategy in place only a few days later after the auction took place.

Alejandro
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DYOR, this is not investment advice
STO, BDR, TRY, MNC, ELT