Inca One Gold (IO.V) has confirmed the Chala One processing plant near Chala, Peru is now officially connected to the power grid. The regional power supplier has tested and approved the company’s new power line, and Inca One expects the facility to be connected to the grid any day now (if it hasn’t already happened).
Power has always been one of the main costs for the Chala One operation, and Inca One thinks the connection to the power grid could allow the company to save 70% on its energy cost, compared to using the diesel generators (which will very likely remain on site as a back-up power source).
The company has now also already closed C$1.3M of the previously announced C$1.5M private placement and the final tranche of the placement is expected to close soon. The proceeds will be used for infrastructural upgrades (like this power line) which should improve the operating margins and ultimately lead to Inca One being profitable and free cash flowing as a consolidated entity.