Orefinders buys 31% of Omega mine owner Mistango River Resources

7 May 2019 (Last Updated May 7th, 2019 11:18)

Orefinders Resources has acquired more than 31% of Mistango River Resources, the owner of the Omega gold mine located in Canada.

Orefinders buys 31% of Omega mine owner Mistango River Resources
The Highland Valley Copper mine in Canada. Credit: Jeffrey Wynne

Orefinders Resources has acquired more than 31% of Mistango River Resources, the owner of the Omega gold mine located in Canada.

As part of the terms of the deal, the company purchased 11,850,000 shares of Mistango, the equivalent of over 31% of the shares outstanding, from Osisko Gold Royalties. In exchange for these shares, the company issued five million Orefinders shares to Osisko.

The Omega mine is located 5km west of Orefinders’ McGarry mine project and 15km northeast of its Mirado project. The asset had historic production of more than 215,000oz of gold between 1935 and 1947.

Based on a NI 43-101 resource estimate completed in 2013, the mine is estimated to contain an indicated resource of 4.92 million tonnes grading 1.39g/t gold for 219,808oz and an inferred resource of 4.69 million tonnes grading 2.43g/t gold for 365,400oz.

Orefinders Resources CEO Stephen Stewart said: “The acquisition of 31% of Mistango River Resources from Osisko is an excellent opportunity for Orefinders to increase its footprint within the prolific Kirkland Lake-Larder Lake camp.

“This acquisition is in line with our strategy of consolidating the Cadillac Larder-Lake Break. The Omega mine is strategically located along the Cadillac Larder-Lake Break proximal to Orefinders’ McGarry Mine and Barber Larder projects.

“Furthermore, it shares synergies with Mirado project, which is just 15km southwest of Omega as well as Agnico Eagle’s Upper Beaver – just 7km north of Omega.”

The transaction was completed pursuant to the terms of a securities exchange agreement reached by the company with Osisko.

“This acquisition is in line with our strategy of consolidating the Cadillac Larder-Lake Break.”

Orefinders noted that it bought the shares of Mistango for investment purposes.

The firm added that it might revise its beneficial shareholdings in the company from time to time as it “may determine appropriate for investment purposes”.

Last month, the miner outlined its planned work programme for its McGarry project along the Cadillac-Larder Lake Break near Kirkland Lake, Ontario.