Falco Resources (TSXV: FPC) has entered into an operating license and indemnity agreement (OLIA) with Glencore Canada allowing Falco to use part of Glencore’s lands. Falco intends to develop and operate its wholly owned Horne 5 copper-zinc mine at Rouyn-Noranda, Quebec.
The agreement includes the creation of a technical committee consisting of two nominees from Glencore and two from Falco to ensure that operations of Glencore’s Horne copper smelter are not adversely affected. A similar strategic committee will also be created. Glencore will appoint one nominee to Falco’s board of directors.
Glencore will retain priority over the operations of the Horne 5 project. Falco must make financial assurances, guarantees, and indemnification to Glencore to cover risks and losses to the smelter. Glencore retains the right to require remediation, suspension, or other risk mitigation to protect the Horne smelter.
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