- AbraPlata Resource Corp is a mineral exploration and development company engaged in the acquisition, exploration and development of mineral resource properties in Argentina.
- AbraPlata will be the Resulting Issuer from the merger of Huayra Minerals Corporation (a private BC-registered company) and Angel Bioventures Inc (a TSX.V-listed company).
- Abraplata has an agreement with Silver Standard Resources Inc to acquire a 100% interest in the Diablillos Property in Salta Province, Argentina.
- AbraPlata additionally has rights to the Cerro Amarillo property in the Province of Mendoza, the Samenta property in the Province of Salta, and the Aguas Perdidas property in Chubut Province all in Argentina.
- The company is expected to be listed on the TSX Venture Exchange after the RTO is completed in Q2 2017.
AbraPlata Resource Corp (www.abraplata.com) is an Argentine-Canadian company listed on the Toronto Venture Exchange (TSX-V.ABRA), and was specifically set-up to take advantage of the mineral potential of Argentina as well as the improving economic and political environment in Argentina since the change of Administration in December 2015. The company was set-up with seed capital from investors in Argentina, Australia, Canada, and the US, and is the resulting issuer from the RTO of Angel Bioventures Inc by Huayra Minerals Corporation.
Huayra was created around the Argentine assets of Canadian explorer Meryllion Resources Corporation who sold off these assets to its Argentine management team when they exited Argentina in 2015. These assets comprised the Cerro Amarillo Cu-(Mo-Au) porphyry project in Mendoza Province and the Samenta Cu-Mo porphyry project in Salta. Huayra subsequently acquired Silver Standard Resources Inc’s Diablillos Ag-Au deposit (1.9m oz AuEq or 135m oz AgEq) in Salta in 2016 as well as the Aguas Perdidas epithermal Au-Ag project in Chubut Province. In late 2016, Huayra and Angel signed a merger agreement and proceeded with the process of having the merger approved by the TSX-V.
An Argentine-Canadian company has distinct competitive advantages over foreign-owned mining companies, particularly in view of the prevalence of “resource nationalism” in South America in general and Argentina in particular. Moreover, secular changes in the mining industry and the realization that the “junior mining” model needs to make considerable adjustments to gain national and local community acceptance, indicates that a different, shared approach requiring a broader participation in the risks as well as the significant rewards inherent in the mining industry is needed.
AbraPlata believes that, with the participation of local capital as well as resident national management, the company is working towards these operating objectives. And the company name endeavours to reflect this. The name embodies “openness” with respect to its dealings with all stakeholders, including local communities, provincial and federal governments, employees, shareholders, and regulatory bodies. Also, AbraPlata means “Silver Pass” reflecting its principal silver-rich project Diablillos which is located in the high plains desert of northwestern Argentina, as well as recognizing the abundant mineral endowment of the Andean chain, and the passes that need to be recognized and traversed in order to access the mineral wealth in the Cordillera.
AbraPlata is well positioned to take advantage of converging factors both with respect to the region as well as within the industry. First of all, Argentina is in the early stages of a new political cycle with an administration that has rapidly moved to make the country more business friendly and integrated with the global economy, in addition, it is mining friendly believing that mining can become the third leg in the economic stool after agriculture and tourism. Secondly, the mineral endowment of Argentina is not in doubt, and the first generation of mines which were developed from the 1990s onwards, are being followed by a number of advanced projects which resulted from exploration over the last 20 years or so. And finally, the mining industry is recovering after a long down turn and investors seem to have renewed, albeit cautious, enthusiasm for the sector.
Within this framework, AbraPlata’s projects are located in Salta (Diablillos and Samenta), Mendoza (Cerro Amarillo), and Chubut (Aguas Perdidas). Salta has been voted for the second year in a row by the Fraser Insitute in Vancouver as the most favoured mining investment destination in Argentina. The Salta authorities are supportive of mining and have provided a framework in which permitting applications are expeditiously vetted. Salta has a long tradition of mining particularly with respect to lithium and borax, and has many advanced metalliferous projects (First Quantum’s TacaTaca porphyry Cu-Au project, Fortuna’s Lindero porphyry Au project, and AbraPlata’s Diablillos epithermal Ag-Au project). In support of these, the Salta government has assisted with the development of an extension gas pipeline from Pocitos to Hombre Muerto which will service the delivery of energy to the lithium, borax, and metalliferous projects in this rapidly developing mining camp.
AbraPlata’s Cerro Amarillo porphyry Cu-Mo-Au project is located in the mining friendly department of Malargüe in Mendoza. Cerro Amarillo lies on the southern end of the porphyry camp of “behemoth” Cu-Mo-Au porphyry deposits (El Teniente, Los Bronces, Los Pelambres, and Altar). In common with these behemoth deposits, Cerro Amarillo is a cluster of five distinct porphyry intrusions, four of which have mapped mineralization at surface. All have good geochemistry, and the company has conducted IP surveys over two of them with good indications of chargeable material lying below mapped mineralization at surface. Mendoza is currently reviewing its mining policies with a view to assisting those departments which support mining activities with respect to rapid implementation of the permitting process.
Aguas Perdidas is located in Chubut Province. It is an epithermal Au-Ag project on which some USD2m has been spent on exploration, and is a walk-up drill target. While not the most favoured mining investment destination in Argentina at this time, the company believes that this may change in the foreseeable future, and is working with competent provincial authorities to further develop this project.