Gold Hawk to Sell Majority Stake of Coricancha Mine

11 August 2009 (Last Updated August 11th, 2009 18:30)

Canadian precious metals company Gold Hawk Resources has signed a non-binding agreement to sell an 85% interest in the Coricancha mine located east of Lima in Peru. Under the agreement, an unnamed firm has agreed to pay $15m cash in return for the Peruvian operating subsidiary and assu

Canadian precious metals company Gold Hawk Resources has signed a non-binding agreement to sell an 85% interest in the Coricancha mine located east of Lima in Peru.

Under the agreement, an unnamed firm has agreed to pay $15m cash in return for the Peruvian operating subsidiary and assume its $13m senior debt facility.

The partner will also provide a $20m loan to fund infrastructure and start-up costs for the mine, including a new permanent tailings facility at Chinchan, Gold Hawk said.

Gold Hawk said it has obtained all necessary permits required to re-start the mine and construct the new tailings facility.

The partner has been granted 60 days to complete its due diligence review and to negotiate and execute definitive documentation.