Minnesota-based Duluth Metals and Chile-based Antofagasta finalized an agreement Wednesday that will pump $130 million into a copper mining venture near Ely.
The deal, first reported in January, will give Antofagasta 40 percent ownership in a new joint company, Twin Metals Minnesota, with 60 percent ownership retained by Duluth Metals.
The money will pay for a mining feasibility study over the next 24-36 months and work towards environmental reviews and permits for a proposed underground mine under Minnesota Highway 1 near the Kawishiwi River east of Ely. Exploratory drilling in the area, over about 31,000 acres just outside the Boundary Waters Canoe Area Wilderness, has reportedly found vast deposits of copper, nickel and other precious metals.
Antofagasta and Duluth each are appointing three representatives to the Board of Directors of Twin Metals. Antofagasta also has the option of increasing its ownership of Twin Metals to 65 percent with additional infusions of cash.
