PERTH (miningweekly.com) – ASX-listed Minera Gold has exercised its option to acquire the San Santiago processing plant, in Peru, for $5.5-million.
Minera in July this year signed the option agreement over the plant, which was currently the subject of a lease agreement under which Minera would treat ore from its Torrecillas gold project, also in Peru.
Minera told shareholders on Wednesday that the processing plant contained a newly refurbished gold circuit and two copper circuits to treat oxide and sulphide copper mineral, as well as 9 000 ha of surrounding mining and exploration rights.
“The cash flow benefits and cost savings from the purchase of the San Santiago processing plant are immediate, and the funding arrangements put in place are largely nondilutive for shareholders, making this a very attractive transaction,” said Minera MD and CEO Ashley Pattison.
The funding for the acquisition has been provided by metal streaming house SilverStream, which would provide Minera with a total of $4.5-million in new funding, which could be drawn down in two tranches.
Minera also entered into a two-year mezzanine agreement with an existing shareholder, under which the shareholder would provide Minera with a $1.25-million facility to complete the mill acquisition. The facility would be a combination of straight debt and a convertible component.