Golden Rim steps onto Chilean soil

PERTH (miningweekly.com) – ASX-listed junior explorer Golden Rim Resources has made a play for Chilean company Herencia Resources, which holds a 70% interest in the Paguanta base metals project, in northern Chile.

Golden Rim on Tuesday reported that it had entered into an agreement with Herencia to negotiate formal documentation to acquire all of the issued shares in Herencia’s wholly owned subsidiary, Paguanta Resources.

Under the terms of the proposed transaction, Golden Rim would make a cash payment of $1.5-million and would issue some $800 000 in fully paid ordinary shares to Herencia, subject to the necessary approvals.

In addition, Golden Rim would pay all the relevant taxes and statutory fees in connection with the proposed transaction, worth an estimated $50 000.

The Paguanta project comprises 14 exploitation concessions covering some 3 900 ha and a further eight exploration concessions covering an additional 2 100 ha. A 2012 feasibility study into the project estimated that a production rate of some 400 000 t/y could be maintained, based on a mineral resource of 4.4-million tonnes, grading 3.7% zinc, 1.4% lead, 84 g/t silver and 0.2 g/t gold.

To date, some $31.5-million has been spent at the project area.

“The Paguanta project presents as an exciting opportunity for Golden Rim to secure an advanced silver-lead-zinc project located in a favourable jurisdiction, which can be quickly progressed to a decision to mine,” said Golden Rim MD Craig Mackay.

“The project also exhibits significant upside, with potential to extend the existing resource at depth and to define additional resources along strike from the primary deposit. There is also recognised potential for porphyry copper systems within the project area.”

The proposed transaction was subject to a number of conditions, including the completion of due diligence, board approval and shareholder and regulatory approvals.