Inca Minerals bids farewell to Peru in strategic shift to Australian gold rush

In a significant restructuring of its asset portfolio, Inca Minerals Limited (ASX: “ICG”), commonly known as Inca, has finalized the sale of its Peruvian subsidiaries, Brillandino Minerales (BMS) and Inca Minerales (IMS). The deal, sealed with Circuit Resources, involves a token sale price of $US2 and includes a 2.0% Net Smelter Return (NSR) Royalty, ensuring Inca retains a stake in any future successes from the projects.

Strategic Divestment Highlights:

– Sale Details: BMS and IMS were sold following comprehensive due diligence, affirming both parties’ satisfaction with the terms and potential.

– Future Returns: Despite divesting these assets, Inca secures a continuing interest in the Riqueza and Cerro Rayas projects through a 2.0% NSR Royalty on any future production.

This strategic divestment comes after a prolonged 18-month negotiation period with potential joint venture partners, which did not result in a partnership. The complexities of the regulatory environment in Peru, coupled with high operational costs, made it challenging for Inca to sustain its Peruvian operations without a joint venture arrangement.

Inca’s board has determined that refocusing on the Australian market will allow the company to manage its operating expenses more efficiently and concentrate on assets with higher prospective returns. The decision aligns with Inca’s long-term strategy to enhance shareholder value by reducing costs and risks associated with overseas operations.

Inca is now set to prioritize its suite of Australian assets, which are seen as highly prospective and better positioned within a more familiar regulatory framework. This shift promises to sharpen the company’s strategic focus and drive its efforts toward significant mineral discoveries and developments in Australia.

This move by Inca Minerals is a calculated retreat from international complexities to a concentrated effort on domestic resources, which could potentially yield faster returns and less operational overhead. The future for Inca in Australia appears promising as it leverages existing infrastructure and expertise within its home territory.