Gold mining and exploration company Calibre Mining has agreed to acquire Canadian miner Iamgold’s 70% interest in the Eastern Borosi gold-silver property.
The Eastern Borosi gold-silver property is located in the northeastern Nicaragua.
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Calibre Mining has surplus processing capacity of about 1.5 million tonnes per annum (mtpa) at the company’s Libertad Complex.
The company will be launching technical studies of the gold-silver property in the fourth quarter this year to better understand how material from Eastern Borosi could be processed at Libertad.
Calibre Mining CEO Russell Ball said: “With the acquisition of Iamgold’s interest in the Eastern Borosi Property, Calibre now controls 100% of a low-sulphidation, epithermal district that hosts numerous high-grade, gold-silver vein systems.
“Our joint-venture relationship with Iamgold has been outstanding and I wanted to thank them for their technical contributions and partnership over the last seven years. We now welcome them as shareholders of the company.”
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By GlobalDataUpon the completion of the transaction, Calibre would issue Iamgold 2,253,961 shares in the company, representing $3m.
After one-year of the transaction agreement, Calibre would pay Iamgold $1m in cash. Iamgold would also retain a 2% net smelter royalty (NSR) from the property.
In June this year, Calibre Mining reduced its 2020 production guidance after a ten-week suspension of mining activities due to the novel coronavirus (Covid-19) pandemic.
In July 2019, Calibre Mining signed a $100m binding agreement to acquire the El Limon and La Libertad Gold Mines, as well as the Pavon Gold Project and additional mineral concessions in Nicaragua from B2Gold.
