Golden Rim's due diligence into Chile project ‘well advanced’

JOHANNESBURG (miningweekly.com) – Australian explorer Golden Rim Resources said on Tuesday that it was aiming to complete the acquisition of a zinc/silver/lead project, in Chile, “as quickly as possible” and reported that only a few matters remained outstanding.

Golden Rim, which announced the acquisition of Herencia’s wholly owned subsidiary, Paguanta Resources, in May, initially aimed to complete the transaction on July 4, but said that the date of completion had been extended to July 24.

“Golden Rim is well advanced in its due diligence investigations. Technical due diligence has been completed and only a few financial and legal due diligence matters remain outstanding, including receipt of the audited accounts of Compania Minera Paguanta and Paguanta Resources.”

Golden Rim MD Craig Mackay pointed to a strong rise in zinc and silver prices since the start of 2016 and stated that the project could be quickly progressed to a decision to mine.

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.

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.