Metminco shares flop on Los Calatos equity investment

Shares in Metminco fell more than a third on news of an up to $45m equity investment linked to the Los Calatos Copper Molybdenum Project, Peru, by CD Capital Natural Resources Fund III LP.

Before settlement of the investment, Metminco entities holding the project would be restructured into a new private operational company, Los Calatos Mining Inc.

"Settlement of the investment will then occur via an equity subscription by CD Capital Fund III for shares in Los Calatos Mining Inc," AIM-quoted Metminco, which is also listed in Australia, said in a statement.

The equity would be applied in three tranches, to complete feasibility studies on the project, with a view to finishing these steps in 3-4 years.

Los Calatos Mining Inc would retain the existing specialist management team to continue with the development of the project. At 14:02 BST, shares in Metminco were down 35.18% to 0.18p.