Shares of Inca One Gold (TSXV:IO) (OTC:INCAF) (Frankfurt: SU9.F) are trading higher today after the company announced it has signed an ore purchase agreement with PPX Mining Corp.
The new agreement will substantially increase Inca One’s throughput at its permitted Kori One processing facility in Peru. Terms of the agreement call for processing of up to 40,000 tonnes of gold-bearing material at a minimum grade of 8 g/t gold during the first year alone.
The Company noted that initial shipments are set to commence in early Q3 of this year.
“We are extremely pleased to secure a significant contract and establish this new relationship with a recognized and proven mining operator in Peru,” stated Edward Kelly, President and CEO of Inca One Gold. “To provide context, Inca One processed 55,000 tonnes of material in 2019, and this contract represents approximately 73% of last year’s total throughput. As licensed miners and ore processors, we both value transparency, business ethics, and intend to build out a significant and mutually profitable business relationship.”
Inca One operates two full permitted mineral processing facilities in Peru. In 2019, the Company produced a combined 24,850 ounces of gold at its Chala One and Kori One processing facilities. It represented the fourth consecutive year of increased gold production by the company.
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Recently, Inca One announced it was launching XplorTracker as part of a new initiative to secure future supplies of gold-bearing throughput for its processing facilities. The Company plans to increase production at its facilities over the next two years with the goal to produce up to 100,000 ounces of gold annually.
Inca One has accumulated an extensive database of samples from gold-bearing material throughout Peru and now plans to utilize it to secure new deals that will fuel the Company’s future growth.
The Company is also close to opening its new direct to consumer gold and silver bullion store in the coming weeks. The online marketplace will allow retail investors to purchase physical gold coins minted exclusively by the Company. Existing shareholders of Inca One will receive discounted rates on gold coin purchases.
Shares of Inca One trade on the TSX Venture Exchange under the symbol IO and on the U.S. OTC MARKETS under INCAF. The Company has just 28 million shares issued and outstanding.
Featured image: DepositPhotos © minervastock
