Morumbi Resources buys El Mochito mine in Honduras

21 December 2016 (Last Updated December 21st, 2016 18:30)

Canadian mining company Morumbi Resources has completed the acquisition of El Mochito zinc, silver and lead mine in Honduras.

Canadian mining company Morumbi Resources has completed the acquisition of El Mochito zinc, silver and lead mine in Honduras.

The acquisition has been completed with the purchase of all outstanding shares of American Pacific Honduras from affiliates of Belgian mining and metals company Nyrstar.

Morumbi Resources president and CEO Chris Buncic said: “The company is extremely pleased by the completion of this transformational acquisition.

“Throughout the negotiation process and during the period since agreeing to purchase El Mochito, our positive working relationship with Nyrstar, as well as our partners and stakeholders in Honduras has allowed us to hit the ground running as we take over the mine.

"We are already hard at work implementing our plan to improve production and cash-flow levels at El Mochito."

“We are already hard at work implementing our plan to improve production and cash-flow levels at El Mochito and to deliver value to our investors.”

With completion of the buy-out deal, Morumbi Resources has also satisfied the outstanding conditions for the release of the escrowed funds from the C$19.5m ($14.5m) financing of subscription receipts that closed on 13 October 2016.

Morumbi Resources and Nyrstar have also received acquisition approval from the Honduran Commission for the Defense and Promotion of Competition.

In line with the completion of the acquisition, the company has also entered offtake agreements with Nyrstar International and its affiliate Nyrstar Sales and Marketing with respect to the acquisition by Nyrstar from Morumbi of all of the lead, zinc and precious metal concentrate from El Mochito.

In addition, Morumbi Resources has changed its name to Ascendant Resources as of 21 December 2016.