Deals this week: Cougar Minerals, Mission Mining, Xanadu Mines and more

6 June 2013 (Last Updated June 6th, 2013 18:30)

Canada-based miner Cougar Minerals has amended its option agreement on the Geel gold and silver mine near Virginia City, Montana, allowing a 100% interest in the project.

Deals this week: Cougar Minerals, Mission Mining, Xanadu Mines and more

Canada-based miner Cougar Minerals has amended its option agreement on the Geel gold and silver mine near Virginia City, Montana, allowing a 100% interest in the project.

In April, the company earned a 25% undivided interest in the Geel mining lease and had an option to acquire another 25% for an undivided 50% stake.

Now with the amended agreement, Cougar Minerals has the option to acquire the remaining 75% interest in the Geel mining lease by paying $400,000 in four tranches to the vendor; issuing a total of 12 million fully paid and non assessable common shares in the capital stock of the company in four tranches; and incurring an additional expenditure of $1m before the two year anniversary of the deal approval by the Toronto stock exchange.

Mission Mining has entered into an agreement with Colten Metals to secure lease, mine, and operating rights for the El Dorado mine in California for 49 years.

In return, Colten Metals will receive convertible preferred shares in Mission Mining with a capped value of $5m in addition to a 9% Net Smelter Return Royalty with regard to all salable metals and other products from the operations on the 17 El Dorado Mine claims.

Mongolian exploration company Xanadu Mines has signed a definitive agreement to acquire a 90% stake in the Oyut Ulaan copper-gold porphyry project from Temujin Mining in a cash-and-stock deal.

To acquire the stake, Xanadu will pay $600,000 and issue five million shares.

In addition, the company will issue Series A & B performance share options following the recognition of a JORC resource of 900,000t of contained copper.

Desert Gold Ventures has signed a joint venture agreement with Toro Gold, a private gold exploration company with several permits in Senegal, to develop the Desert Gold Souroundou Permit in Eastern Senegal.

Under the terms of the agreement, Toro Gold will earn increasing equity participation in line with the exploration work conducted.

Kiska Metals has announced that its wholly-owned subsidiary, Geoinformatics Alaska Exploration, has entered into an exploration agreement with Baker Hughes Oilfield Operations.

The agreement provides Baker Hughes with the right to explore the Hilltop Property for barite minerals on Kiska's 82 unpatented lode mining claims situated in Lander County of Nevada.


Image: Mining sector saw several deals signed this week. Photo: Suat Eman/ Freedigitalphotos.net.

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