Marcona Copper Project
Financing

Discussions with several major financial institutions in Canada are well advanced with respect to a significant equity capital raising. Funds will be directed to Chariot's share of the acquisition costs and to conduct a two year feasibility study into developing the above referred to Marcona Copper Project into commercial production.

Joint Venture

Chariot previously announced on June 11, 2004 that it had reached agreement in principle with Korea Resources Corporation and LG Nikko Copper Inc (collectively the "Korean Joint Venture") to form a Joint Venture to participate in the acquisition and development of the Marcona Copper Project. Under the agreement Chariot and the Korean Joint Venture will hold respectively 70% and 30% contributing interests in the Marcona project through their respective interests in the equity of Marcobre S.A.C which has been incorporated in Peru to hold a 100% undivided working interest in the Marcona Copper Project. The Korean Joint Venture will, during the first 10 years of production, purchase up to 70% of the production of copper cathodes and up to 90% of the annual production of copper concentrates produced by Marcobre under formal Off-Take Agreements which will be based on arm's-length internationally accepted commercial terms. The terms of the Joint Venture Agreement and the Off-Take Agreements are expected to be finalized during the month of September.


More info:.