Deals this week: Centerra Gold, New Jersey Mining, Canadian Zinc and more

12 September 2013 (Last Updated September 12th, 2013 18:30)

Centerra Gold has entered into a non-binding memorandum of understanding (MOU) with the Government of the Kyrgyz Republic, which could pave the way for joint ownership of the country's Kumtor gold mine project.

Handshaking

Centerra Gold has entered into a non-binding memorandum of understanding (MOU) with the Government of the Kyrgyz Republic, which could pave the way for joint ownership of the country's Kumtor gold mine project.

Under the MOU, Kyrgyzaltyn would exchange its 32.7% stake in Centerra for a 50% interest in a joint venture company that may own the project.

According to terms of the MOU, the number of agreements entered in 2009 by Centerra, Kyrgyzaltyn and the government would remain in effect, including the one concerning tax.

Centerra would remain operator of the project and Kyrgyzaltyn would receive six million warrants to acquire Centerra shares at an exercise price of C$10 and the warrants would be exercisable for two years.

The New Jersey Mining Company has signed an option to lease agreement with Juniper Resources for the Skookum Shoot of the Golden Chest Mine in northern Idaho, US.

Marathon Gold owns a 52.22% stake in the Golden Chest Mine and the remaining 47.88% interest is held by New Jersey Mining, which is also the project operator.

The deal gives Juniper the option to undertake definition drilling on the Skookum Shoot.

Juniper has until 30 November 2013 to decide whether to proceed with underground mining of the Skookum Shoot and if the company moves ahead with mining prior to expiration of the option period, the lease term is 39 months from the signing date.

Exploration and development firm Canadian Zinc has agreed to acquire Messina Minerals.

Under the binding agreement, Canadian Zinc will acquire all of the outstanding common shares of Messina by way of a statutory plan of arrangement on the basis of one share of it for 5.9 shares of the mineral exploration firm.

Canadian Zinc has also agreed to acquire, in a non-brokered private placement financing, 3,000,000 Messina common shares at a price of $0.05 per share, for a total consideration of $150,000.

Messina has a 100%-interest in the Tulks South Property, which includes the Boomerang, Domino and Long Lake base and metal-rich volcanogenic massive sulphide deposits.

Brigadier Gold has signed a letter of agreement with Santa Fe Metals to acquire Cuatro Ciénegas mineral property in Mexico.

The property features six concessions totalling 3,408ha located towards the northeast of the city of Torreón, in the state of Coahuila.

As per the deal, Brigadier will pay an aggregate of $882,000 over a 42 month period, of which $625,000 will be paid by the issue of treasury shares having that value on the market as they are issued over that period.

The company has the option to speed up the payments in order to acquire the property in a shorter span of time. The agreement is subject to TSX Venture Exchange approval.

Veolia Water Chile and Vapor Procesos have secured a contract from Codelco to recover copper from tailings pond water at El Teniente mine located south of the capital Santiago, Chile.

The mine, which has been operating since 1905, produces about 400,000 metric tonnes of copper per year.

Veolia Water Chile and Vapor Procesos established a joint venture, dubbed Veolia W Procesos (VWP), to provide metal recovery services to Chile's mining industry.

As part of the deal, VWP will design, build and begin operation of a new mining effluent processing facility in 2013 at El Teniente mine.

The new facility will treat three million cubic meters of water a year and recover around 1,680 tons of copper over the five-year contract term.


Image: Several deals were signed this week. Photo: Courtesy of FreeDigitalPhotos.net.

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