Gold streaming opportunities, page-5

Firstly an apology to all. In my post on Gold streaming opportunities, i incorrectly referred to DFS. What we have is the PFS with my refeence to DFS being an error as i was reading allot about streaming arrangements at PFS vs DFS and mixed up while writing.

What i meant to say was that Costa Fuego now has the PFS and this makes Gold streaming an realistic funding option for at first stage to complete the DFS (pre-construction costs) and then at a second stage to partly finance the construction costs.

I do see that PFS is a viable basis to negotiate the Gold streaming owing to;
1. Significant risk reduction capex included in the PFS
2. The good scale of the project, not even considering any add on from La Verde
3. The significant advantages from low elevation
4. Chile being the top copper jurisdiction globally

many companies have obtained Gold streaming finance at the stage that Costa Fuego is in

certainly another $50 million may be needed to complete the DFS, which may include the impact of La Verde being an additional feeder resource and pushing back development costs related to block cave mining. The old streaming is perfect for this

Once the DFS is completed then the full development funding can be considered being a mix of
1. Main financing under the Gold streaming, where we could be looking at 200-300 million, maybe more
2. Farm out of Huasco Water
3. package of debt and equity finance to complete development cost requirement plus overruns
4. There is always the possibility that another partner comes in and finances their share of the project, doing away with the need of the debt/equity package but diluting the share of the project that HCH has

My concusion is that the Costa Fuego project (and Huasco) are viable and of good scale. What is needed now is management of the financing.