Capstone Considers Export Facilities
MSD will allow PASA to study the project engineering and conduct a market study. PASA is looking to potentially acquire, construct, operate and maintain the deep-water port, including financing its development. Once in operation, Santo Domingo will receive preferred service as its volumes will represent a baseload of business for the port. The MOU also gives PASA 90 days to evaluate the replacement of the 110-km magnetite concentrate pipeline with a railway as part of its rail business, Ferrocarril del Pacifico SA (FEPASA). The Santo Domingo project infrastructure that is under consideration in this MOU represents approximately $400 million of the CAPEX, including marine works and the pier; iron concentrate pipeline from Santo Domingo mine to port; magnetite filter plant and stockpile building; copper storage building; and ship loading and support facilities. “Over the past three months, we have seen a surge in interest in our fully permitted Santo Domingo project,” Capstone President and CEO Darren Pylot said. “I believe this relationship with Puerto Ventanas will serve as a major catalyst for our Santo Domingo project.”
The path forward includes the culmination of the strategic sales process, executing a gold stream agreement and arranging project debt financing, the company said. “A partnership with PASA would simplify the Santo Domingo project as we would focus on construction and operational ramp-up of the mine site only, lowering our upfront capital requirements and allow each company to focus on their core business,” Capstone Vice President of Projects Dr. Albert Garcia said.