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                                                                    EXHIBIT 4.16

THIS SERVICES AGREEMENT is effective this 11th day of June, 2004

BETWEEN:

      METALLICA RESOURCES INC.
      (the "Company")

      - AND -

      OLIVER LENNOX-KING
      (the "Service Provider")

BACKGROUND:

The Company carries on a business primarily consisting of minerals exploration
and development.

The Company is of the opinion that the Service Provider has the necessary
qualifications, experience and abilities to provide services in connection with
the Company's desire to pursue merger, acquisition and combination
opportunities.

The Service Provider is agreeable to providing such merger, acquisition and
combination consulting services to the Company, on the terms and conditions as
set out in this Agreement.

IN CONSIDERATION OF the matters described above and of the mutual benefits and
obligations set forth in this Agreement, the receipt and sufficiency of which
consideration is hereby acknowledged, the parties to this Agreement agree as
follows:

    Engagement

    The Company hereby agrees to engage the Service Provider to pursue and
    evaluate corporate merger, acquisition and combination opportunities for the
    Company and such other services as the Company and the Service Provider may
    agree upon from time to time (the "Services"), and the Service Provider
    hereby agrees to provide the Services to the Company.

    Term of Agreement

    The term of this Agreement will begin on the date of this Agreement and will
    remain in full force and effect until completion of the Services.

    Performance

    Both parties agree to do everything necessary to ensure that the terms of
    this Agreement take effect.

    Compensation

    For the Services provided by the Service Provider under this Agreement, the
    Company will pay to the Service Provider compensation in the amount of
    US$600.00 per day. Compensation will be payable once per month within 10
    days

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    of receipt and approval of Service Provider's invoice. The Company is
    entitled to deduct from the Service Provider's compensation any applicable
    deductions and remittances as required by law.

    In the event that a transaction involving Penoles' Pinos Altos project in
    Mexico is consummated, the Audit Committee will consider a finders fee
    payment to the Service Provider.

    Expenses

    The Service Provider will be reimbursed from time to time for all reasonable
    and necessary expenses incurred by the Service Provider in connection with
    providing the Services hereunder. The Service Provider will furnish
    statements and vouchers to the Company for all such expenses.

    Notice

    All notices, requests, demands or other communications required or permitted
    by the terms of this Agreement will be given in writing and either served
    personally, by registered mail or by facsimile. The addresses for any notice
    to be delivered to any of the parties to this Agreement are as follows:

          Metallica Resources Inc.
          c/o Metallica Management Inc.
          12200 East Briarwood Ave., Suite 165
          Centennial, Colorado  80112
          Facsimile:  303-796-0265

          Oliver Lennox-King
          43 Benlamond Ave.
          Toronto, Ontario  M4E 1Y8
          Facsimile: 416-363-6806

    or to such other address as to which any party may from time to time notify
    the other.

    Capacity/Independent Contractor

    It is expressly agreed that the Service Provider is acting as an independent
    contractor and not as an employee in providing the Services hereunder. The
    Service Provider and the Company acknowledge that this Agreement does not
    create a partnership or joint venture between them.

    Modification of Agreement

    Any amendment or modification of this Agreement or additional obligation
    assumed by either party in connection with this Agreement will only be
    binding if evidenced in writing signed by each party or an authorized
    representative of each party.

    Time of the Essence

    Time will be of the essence of this Agreement and of every part hereof. No
    extension or variation of this Agreement will operate as a waiver of this
    provision.

    Entire Agreement

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    It is agreed that there is no representation, warranty, collateral agreement
    or condition affecting this Agreement except as expressed in it.

    Severability

    In the event that any of the provisions of this Agreement are held to be
    invalid or unenforceable in whole or in part, all other provisions will
    nevertheless continue to be valid and enforceable with the invalid or
    unenforceable parts severed from the remainder of this Agreement.

    Currency

    Unless otherwise provided for, all monetary amounts referred to herein will
    be paid in US dollars.

    Governing Law

    It is the intention of the parties to this Agreement that this Agreement and
    the performance under this Agreement, and all suits and special proceedings
    under this Agreement, be construed in accordance with and governed, to the
    exclusion of the law of any other forum, by the laws of the Province of
    Ontario, without regard to the jurisdiction in which any action or special
    proceeding may be instituted.

IN WITNESS WHEREOF the parties have duly executed this Service Agreement this
11th day of June, 2004.

                  /s/ Richard J. Hall
                  Richard J. Hall
                  President and CEO
                  Metallica Resources Inc.

                  /s/ Oliver Lennox-King
                  Oliver Lennox-King
                  Service Provider