Under the terms of the agreement, Polymet—a subsidiary of Red Metal—will collect a 10% royalty on the gross value of all minerals extracted. The contract includes a guaranteed minimum payment of US$1,000 per month once the initial three-month grace period concludes. During this time, CMS Catalina is tasked with securing necessary environmental and operational permits, including plans for explosives storage and site closure, alongside infrastructure upgrades to improve road access.
Red Metal Resources Leases Chilean Copper-Gold Assets to Local Miner
Red Metal Resources has signed a renewable five-year agreement to lease its Irene and Margarita copper-gold concessions in Chile to Vallenar-based artisanal operator CMS Catalina. The deal allows the Vancouver-based company to generate royalty revenue from the 106-hectare site while retaining full rights for future exploration.
Production is expected to scale incrementally, reaching a target of at least 2,500 tonnes of ore per month by the third month of active operations. Failure to maintain these production levels provides Polymet the right to terminate the lease. While the site previously saw small-scale extraction between 2009 and 2010, Red Metal CEO Caitlin Jeffs noted that the new arrangement aligns with the company’s broader strategy of unlocking value from its Chilean portfolio without assuming the operational risks of direct mining. The concessions remain distinct from the company’s separate Carrizal property, where additional exploration work remains ongoing.
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