JOHANNESBURG (miningweekly.com) – Dual-listed Metminco has signed a heads of agreement (HOA) with RMB Australia to purchase Minera Seafield, which owns the 2.8-million ounce Quinchia gold project, in Colombia.
The Quinchia portfolio covered 6 043 ha of granted concessions and an additional 3 792 ha of pending applications, which contained a number of deposits and exploration targets including Miraflores, Dosquebradas and Tesorito.
“The acquisition presents an important opportunity for Metminco [as] we will have access to highly prospective concessions with significant potential to substantially increase these resources,” MD William Howe said.
The near-term Miraflores deposit development contained 1.88-million ounces gold and 3.8-million ounces silver, while Dosquebradas held 920 000 oz gold and 1.04-million ounces silver.
The Tesorito target, where drilling was ongoing, had also returned high intercepts of gold, silver and copper.
Metminco would issue RMB with 50-million fully paid ordinary shares at a deemed price of 0.5c apiece on the HOA becoming binding, where after it would issue RMB with 350-million fully paid shares, as well as reimburse RMB in cash for costs incurred by Minera Seafield for the period from execution of the offer letter to the settlement. This was estimated to be about A$500 000.
Metminco would further pay A$7-milllion in cash to RMB in four tranches, and pay up to A$7-million in royalties from operating cashflows.
Edited by: Mariaan Webb
Creamer Media Senior Deputy Editor Online
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