Deals this week: Hodgins Auctioneers, Lara Exploration, Gold Standard Ventures and more

6 March 2014 (Last Updated March 6th, 2014 18:30)

Hodgins Auctioneers has signed a conditional agreement with Majesta Resources to acquire a 25% undivided interest in a group of nine contiguous mineral claims.

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Hodgins Auctioneers has signed a conditional agreement with Majesta Resources to acquire a 25% undivided interest in a group of nine contiguous mineral claims.

The mineral claims include a combined total of 39,125ha (98,233 acres) located 230km north-west of La Ronge and 445km north of Prince Albert, Saskatchewan, and the north-eastern corner of the claims are 10km from the Key Lake uranium mill.

The company is making this unique acquisition as it is low-cost in relation to similar transactions in the area, due to the relationship between two of the insiders of the Corporation and the party which owns the mineral claims.

Hodgins Auctioneers considers the Majesta mineral claims to be in a favourable geological setting as they are on strike with high-grade Athabasca Basin uranium discoveries.

The basin is a premier geological district famous for holding the world's richest uranium deposits, a politically stable government and a well-established exploration and mining industry.

Hodgins will purchase a 25% undivided interest and two options to acquire up to an additional 65%.

The company will be required to issue two million common shares at a deemed price of $0.05 per share for the 25% undivided interest.

Lara Exploration has announced the expiration of the letter of intent, whereby Lara and privately-held Kiwanda Mines agreed to sell their interests in certain coal properties and assets in Colombia to Nebo Capital.

The interests comprise a 19.91% equity interest in Carbhid SAS and the option to earn a 51% interest in all of Carbhid's interests in the Escalones property, in return for investing $830,000 in exploration and development of the property by 30 December.

The agreement also covers an option to acquire a 75% interest in the Pelaya exploration prospect in the Cesar district of Northern Colombia, for payments of $3.8m over five years, exploration work commitments and a 100% interest in Andean Coal Alliance, a company incorporated in the British Virgin Islands and owned equally by Lara and Kiwanda.

Gold Standard Ventures has now completed the purchase of the remaining portion of the Pinion gold deposit from Scorpio Gold.

Upfront consideration for the acquisition consisted of C$6m in cash, paid from the net proceeds of the company's C$11m marketed private placement, which closed yesterday, and the issuance to Scorpio of 5.5 million common shares of Gold Standard.

The share consideration is subject to an orderly sale agreement and requires Scorpio to vote its Gold Standard shares, as recommended by management for a period of two years.

Coastal Gold has signed a deal with Falcon Metais to sell its wholly-owned subsidiary, Castillian Metais (CML), which holds a 100% interest in the Mangabal nickel-copper project in Goias State, Brazil.

In consideration for the shares of CML, Falcon Metais has agreed to assume all liabilities and obligations of CML, including those relating to the Mangabal project, from and after the date on which the sale closes.

Pursuant to the agreement, the company has also agreed to issue more than 3.1 million common shares of the company to Amazon Potash, the parent company of Falcon Metais, at a deemed price of C$0.05 per share. This is a repayment of R$111,900 that Falcon Metais paid on behalf of the company to the Departamento Nacional de Produção Mineral, and an additional R$219,700 that Falcon Metais has agreed to pay on behalf of the company to DNPM, in settlement of liabilities relating to the Mangabal project.

Magellan Minerals has entered into a binding letter of intent with Ross Beaty to partner on its interests in the Pocone gold belt in the state of Mato Grosso in western Brazil.

Magellan holds interests in two joint ventures in the Pocone area that include approximately 64,090ha, which are held in a 50-50 joint venture with a private Canadian company, ECI Exploration and Mining.

In addition, Magellan owns a 35% interest in Pocone Gold Mineracao, a private Brazilian company that is also 35%-owned by ECI and Brasil Central Engenharia, which owns a 30% interest. Pocone Gold controls approximately 122,390ha in the Pocone region.

According to the principal terms of the agreement, Ross Beaty will pay Magellan a total of $1m in cash, including $250,000 on execution of a definitive agreement within 30 days and a further $250,000 on the first anniversary, and an additional $250,000 will be paid to Magellan once ECI and Magellan complete the transfer of their claims to Newco. The remaining $250,000 will be paid on the first anniversary of this transfer.

ECI will sell its interests in the Pocone belt to Ross Beaty, according to the same terms.


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