Under the deal, the company will pay C$0.45 per share and fund the liquidity requirements of Duluth through to closure of the transaction.
The offer price represents a 284% premium of the 20-day volume weighted average price of Duluth Metals’ common shares as at 31 October.
The acquisition will provide Antofagasta with full ownership of Twin Metals Minnesota (TMM), a joint venture of Antofagasta and Duluth.
TMM is focused on developing a copper-nickel-cobalt-platinum-palladium-gold-silver project at Duluth Complex in north-eastern Minnesota.
The Victory Nickel project is adjacent to Corazon’s nickel project in Lynn Lake.
With this acquisition, the Lynn Lake Nickel-Copper Field will see the merger for the first time since its closure in 1976.
From 1953 to 1976, the mine produced 22.2 million tonnes at the rate of 1% nickel, and one million tonnes at the rate of 0.5% copper.
The project is said to host measured, indicated and inferred resource of 17 million tonnes at the rate of 0.66% nickel and 0.33% copper.
Corazon expects that the combination of the projects will improve the economics of potential mining operation, as well as provide benefits in scale and possible mine life.
Canada Rare Earth has signed a joint venture (JV) agreement with Mineracao Mata Azul to accelerate exploration on the latter’s rare earth minerals property in Brazil.
The companies will also work to establish and operate mining and concentration operations for mineral rights owned by Mata Azul.
With this deal, Canada Rare Earth will be able to purchase all of the rare earth concentrate from the project.
Canada Rare Earth will have 80% interest and Mata Azul will hold the remaining 20% stake in the JV.
The JV will have an option to raise $5m until November 2015, to fund the acquisition of the rare earth and other mineral rights owned by Mata Azul.
Canada Rare Earth has agreed to redistribute 50% of dividends to Mata Azul, valued more than $2m each year.
In addition, the company has allocated 5% of its 80% interest to CEC Rare Earth (REC) on the condition that it discounts professional fees of $250,000 for the Mata Azul project.
Canada Rare Earth has an option to acquire REC’s 5% interest for $750,000 in three years.
Coro Mining has entered into an agreement to sell 70% of its Llancahue project to Minera Peñoles de Chile, a subsidiary of Mexican mining firm Industrias Peñoles.
Under the deal, Peñoles will have to pay $150,000 on signing the option agreement, $200,000 on or before 12 months, $250,000 on or before two years, $300,000 on or before three years, $400,000 on or before four years and $4.7m on or before five years from signing.
If the option is exercised, the companies will form a new company with 70% held by Peñoles and 30% by Coro Mining. If Coro’s interest in the new entity decreases to 10% then it will be entitled for 2.5% net smelter royalty (NSR).
Peñoles will have 90 days to acquire Coro’s 30% interest for $6m and a 1.5% NSR
Located 300km south of Santiago in the VII Region of Chile, the Llancahue project intercepted 100m at 1.37% copper as part of two reverse circulation drill programmes in 2009.
Prophecy Coal has entered into an agreement to acquire Apogee Silver’s subsidiaries, Apogee Minerals Bolivia and ASC Bolivia for C$250,000.
Under the deal, the company will pay the cash and issue 60 million Prophecy common shares.
The proposed transaction is subject to consent from the regulatory authorities, Apogee shareholder and other necessary approvals.
Prophecy Coal and Apogee Silver plan to enter into an escrow agreement, which will allow them to release consideration shares from escrow when Prophecy shares on the TSX reach certain price levels or in certain triggering events.
Prophecy currently has issued and outstanding common shares of 251,878,634, which if released from escrow as of now will provide Apogee with a 19.24% interest in Prophecy’s shares.
Apogee plans to seek approval for the transaction at a meeting of its shareholders to be held on 19 December.
Image: Several deals were signed this week. Photo: courtesy of adamr / FreeDigitalPhotos.net.