Deals this week: Avanti Mining, WMN, Red Eagle Mining and more

5 June 2014 (Last Updated June 5th, 2014 18:30)

Avanti Mining and its wholly owned subsidiary Avanti Kitsault Mine have signed a deal with the Nisga'a Nation to proceed with the $1bn Kitsault molybdenum mine project in north-western British Columbia, Canada.

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Avanti Mining and its wholly owned subsidiary Avanti Kitsault Mine have signed a deal with the Nisga'a Nation to proceed with the $1bn Kitsault molybdenum mine project in north-western British Columbia, Canada.

The agreement will not only resolve the nation's concerns over environmental protection, but it will also provide economic benefits to the Nisga'a Nation, including a net smelter royalty of up to 2%, based on current molybdenum prices.

Kitsault mine construction work is expected to begin this year. When fully operational, the mine will provide around 300 full-time jobs during its 14-year life span.

Located within the Nass area, the Kitsault mine was previously operated from 1968 to 1972, and from 1980 to 1982.

The Board of Western Mining Network (WMN) has signed a heads of agreement to acquire a 75% stake in Milestone Link, for an undisclosed amount.

Milestone Link has indications of graphite in Kolaka, South East Sulawesi, Indonesia, as well as a 75% stake in Mekongga Sejahtera and a 40% stake in PT Eagle Rich.

The purchase of Milestone will give WMN the controlling interest in Mekongga and PT Eagle Rich.

The transaction is subject to regulatory approvals.

Red Eagle Mining has entered into a deal to purchase 100% of certain contiguous mineral exploration rights of San Ramon extension, from AngloGold Ashanti Colombia (AGAC).

As per the deal, Red Eagle will pay $375,000 to AGAC for two years and grant a 2% net smelter return royalty on the properties purchased.

The San Ramon extension has a total area of 1,673ha and is located within Red Eagle Mining's Santa Rosa Gold project in Antioquia, Colombia.

The purchase includes around 1km extension directly on strike to the east of the 2km-long San Ramon gold deposit, which ends at the east on the adjacent AGAC concessions.

Meanwhile, Red Eagle has also completed its previously announced ten core drill holes that intercepted the deposit within 100m of the AGAC concessions.

The National Industrial and Mining Company (SNIM) has signed a term sheet agreement with Glencore to provide transportation services.

Under the deal, SNIM will provide service expertise and infrastructure to transport Glencore's production at Askaf mine in northern Mauritania.

SNIM will transport the products on the railway Nouadhibou storage and on boats.

The 18-year agreement defines the conditions of transportation, which includes IMG 7722 storage, loading and pricing, and terms of service.

Renaissance Gold has signed a new exploration earn-in agreement with Summit Mining Exploration II for the Fourth of July silver-gold project in Pershing County, Nevada.

The Fourth of July project contains many historic silver and gold prospects, including the Arizona mine.

The geological mapping and sampling at Arizona mine conducted by Renaissance Gold revealed assays of up to 95.72 parts per million (ppm) gold, 6,006ppm silver, 6,400ppm copper, 9,500ppm lead and 9,100ppm zinc.

As per the agreement, Summit Mining will pay an initial amount of $50,000 to Renaissance Gold, with subsequent anniversary payments of $50,000 up to a total of $215,000. The last payment made would be $15,000 to recover costs expended by Renaissance Gold.


Image: Several deals were signed this week. Photo: courtesy of PinkBlue / FreeDigitalPhotos.net.

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