The LOI lays out the details of a long-term take-or-pay PPA, with the generated energy expected to be sold to the Aguas Blancas Mine. A definitive agreement is expected to be signed by the end of this March and Etrion hopes to have the park online by the second quarter of 2014.
Under US$20 million will be invested in the project, said Etrion in a statement released. While the company will fund a portion of it, the remaining funds will be provided via non-recourse project financing.
The execution of the project is dependent, however, on the signing of the PPA, the obtainment of financing and regulatory approvals.
"Our focus on Chile is beginning to pay off and we are well positioned to serve the mining sector," said CEO, Marco A. Northland. He added, "This project validates our strategy to move beyond government subsidies into markets with high solar irradiation and demonstrates that solar can compete with traditional sources of electricity today."