Echo Energy and Boku Resources SAC sign agreement in Peru for mining projects

The British company Echo Energy PLC has taken a significant step in its expansion into the mining sector by announcing the signing of a joint venture agreement in Peru with the founding partners of Boku Resources SAC. This strategic alliance aims to develop mining projects in the South American country, specifically in the areas of gold and silver mining in Arequipa, as well as the remediation of tailings deposits in Huaraz. Through this partnership, Echo Energy secures 50% of Boku's production and potential resources, committing to invest a total of US$750,000 over a period of 18 months to obtain this stake. This investment will allow the British company to scale up its mining operations in Peru and diversify its project portfolio in the country. The joint venture agreement will be carried out under a BTA trust scheme, thus complying with the current mining legislation in Peru, especially regarding artisanal and small-scale mining (ASGM). This legal structure ensures that operations are conducted transparently and in compliance with local regulations. Boku Resources SAC holds the Tesoro gold concession in the Nazca-Ocona gold corridor in the Arequipa region, where it plans to start artisanal and small-scale mining operations. The company estimates it will be able to generate revenue starting in the fourth quarter of 2024, with an initial production of 67,500 ounces of gold and potential for scaling up in the future. In addition to gold and silver mining in Arequipa, Boku has a significant amount of tailings from historical mining activities in Huaraz, which contain gold and silver in varying concentrations. The joint venture aims to clean up these tailings deposits to comply with Peruvian environmental regulations and utilize the mineral resources present in them. A technical report commissioned by Echo estimates that cleaning up the tailings could yield up to 243,000 ounces of gold equivalent, ensuring a processing lifespan of 40 years at a rate of 350 tons per day. This project represents both an economic and environmental opportunity, as it will remediate the lands affected by the tailings and recover the precious metals present in them. In summary, the signing of this joint venture between Echo Energy and Boku Resources SAC marks a significant milestone in the British company's expansion into the Peruvian mining market. With a commitment to investing in sustainable projects and complying with current regulations, both companies aim to generate positive impacts both economically and environmentally. This agreement showcases Peru's potential as an attractive destination for foreign investment in the mining sector and lays the groundwork for future collaborations in the industry.