BioteQ and Phelps Dodge Mining Company, a division of Phelps Dodge Corporation, have signed an operating agreement for recovery of copper from a low-grade process stream at the Bisbee project. An engineering report prepared by BioteQ, previously announced, estimates the total capital cost of the project at $US 1.9 million, before contingency. The net operating revenue is estimated at approximately $US 1.05 million per year at a copper price of $US 0.75 per pound.
The joint venture operating agreement provides for the formation of Copreco LLC, an Arizona limited liability company, based on the terms and conditions of an agreement signed between BioteQ and Phelps Dodge in October, 2002 as previously announced. BioteQ and Phelps Dodge initially have an equal interest in the joint venture. The joint venture is subject to certain capital expenditure obligations and conditions. BioteQ will provide a capital cost guarantee for the agreed upon process flow sheet.
Source: BioteQ Environmental Technologies Inc.