Join our daily newsletter At The Bell to receive exclusive market insights
- Inca Minerals’ (ICG) Managing Director, Ross Brown, has penned a letter to shareholders
- The letter outlines general activities the company has conducted over 2020 and seeks to assure investors exploration work will continue on the Riqueza project in Peru
- Initially, South 32 (S32) was also exploring Riqueza, before it exited the project in May following a $4 million exploration spend
- Inca’s Managing Director is also hoping for a share consolidation to be approved by shareholders at the upcoming AGM
- Inca Minerals shares are steady today, trading for 0.2 cents
Inca Minerals’ (ICG) Managing Director, Ross Brown, has penned a letter to shareholders.
In the update, Ross primarily outlined the exploration work the company has been conducting at its Riqueza project in Peru.
The letter follows news in May that the company’s project partner was pulling out of the precious and base metals play. South 32 (S32), the company spun out of BHP in 2015, signed an agreement with Inca in 2019 to explore the property.
They then conducted $4 million of exploration work on the property within a year, before exiting the deal in May.
Ross Brown addresses the withdrawal in his letter, stating that the “departure of our funding partner” was “disappointing, and may have been a concern to [investors].”
He put South 32’s withdrawal from the project down to the “tremors of the COVID-19 pandemic” as the decision was made prior to the review of the exploration program and the drill recommendations made just last month.
Ross states that the company will now look to fund the drilling work itself and has begun the permitting process for drilling work.
Moving forward, the company hopes to drill at Riqueza by the end of the year, assuming no more complications from COVID-19 or any other disruptive influence.
Alongside this, the company is also set to undergo a major share consolidation.
Inca is currently trading at close to $0.01 per share, which is why the company is looking to consolidate stock. Whether or not this will occur will be revealed at the company’s AGM on June 25.
Inca Minerals shares are steady today, trading for 0.2 cents at 10:29 am AEST.
