Fitzroy Minerals Inc. (TSXV: FTZ, OTCQX: FTZFF, FSE: C3Y) announced the execution of a non-binding Letter of Intent (LOI) with Sociedad Punta del Cobre S.A. (Pucobre) for a potential joint development pathway for the Buen Retiro Copper Project in Chile. The LOI outlines a framework that leverages regional infrastructure and operational experience, signaling a significant step toward advancing the project.
Under the LOI, Pucobre has confirmed its intent to exercise its 30% claw-back right, subject to continued positive technical results, and has offered Fitzroy access to processing capacity at its Planta Biocobre electro-win (EW) facility. The plant, located 70 km from the Buen Retiro Project, has a nameplate capacity of 800 tonnes of copper cathode per month and is currently underutilized. This arrangement is expected to reduce capital intensity, accelerate development timelines, and lower execution risk compared to standalone processing scenarios.
Pucobre will also provide real-world cost data from its nearby mining and processing operations, including open-pit mining costs, processing costs at Planta Biocobre, transport cost benchmarks, and construction experience. These inputs will be used in the Heap Leach Pre-Feasibility Study (PFS), strengthening the reliability of capital and operating assumptions.
Merlin Marr-Johnson, President and CEO of Fitzroy Minerals, commented: “The joint Letter of Intent is a major validation of the Buen Retiro Heap Leach project and is a win for both parties. Pucobre benefits by potentially securing production to fill spare capacity at Planta Biocobre, improving operational economics. Fitzroy benefits by having access to an operational EW tank-house, reducing capital expenditure and simplifying permitting. The terms of the claw-back mean that, upon exercise in mid-2027, Pucobre would reimburse 90% of project expenditures, making the exploration and technical work exceptionally capital-efficient.”
The LOI recognizes a dual-track strategy: development of oxide resources through heap-leach/SX-EW, supported by regional infrastructure and the PFS, and continued exploration of sulphide mineralization as a longer-term value driver. Fitzroy plans to provide an exploration update concurrent with the PFS publication, summarizing results from workstreams not incorporated into the initial mine plan.
The Buen Retiro Option agreement, dated January 1, 2023, allows Fitzroy to earn 100% of the project by completing four steps by mid-2028: at least 12,000 metres of drilling (already met), at least US$7 million in eligible expenses, delivery of a Final Technical Report including a PFS and resource estimates, and a US$4 million bullet payment. Fitzroy anticipates completing all steps by Q2 2027. Upon completion, Pucobre intends to exercise its claw-back right to acquire a 30% interest by paying 90% of eligible expenses, estimated at a minimum of US$10.2 million.
Sebastian Rios, CEO of Pucobre, stated: “We are pleased to be working with Fitzroy to advance the Buen Retiro Project through a collaborative development approach that leverages regional infrastructure and our operational experience. We believe this partnership provides a strong framework to create long-term value for both companies.”
Commercial terms for processing arrangements are expected to be negotiated within approximately 90 days. Additionally, Fitzroy entered into an investor relations agreement with Stonegate Capital Partners on April 22, 2026, for targeted investor outreach, subject to TSX Venture Exchange approval.
This announcement underscores the importance of strategic partnerships in reducing development risks and costs for copper projects in Chile. The collaboration between Fitzroy and Pucobre could serve as a model for leveraging existing infrastructure to advance mining projects efficiently.
