Deals this week: Lara Exploration, Alderon Iron Ore, Klondike Gold and more

27 February 2014 (Last Updated February 27th, 2014 18:30)

Lara Exploration’s affiliate Andean Coal (BVI) has agreed to acquire a 51% stake in Carbhid's interests in the Escalones Property in Colombia.

Mining

Lara Exploration's affiliate Andean Coal (BVI) has agreed to acquire a 51% stake in Carbhid's interests in the Escalones Property in Colombia.

The Escalones Property covers a 90.58ha portion of mining concession agreement FGL-111, which is located in the coal producing Boyacá Region of Central Colombia.

Andean Coal will invest $830,000 in exploration and development of the property by 30 December and Carbhid will remain the operator of the property.

Lara Exploration and Andean Coal have invested about $330,000 since December of 2012 in development work on the Escalones property, to acquire a 19.9% stake in Carbhid.

Lara said the funds were mostly invested to develop the El Diamante and Carbhid two mines.

El Diamante is currently ramping-up production from the current 300t a month to reach a rate of 1,500t a month.

The first operating front at Carbhid two mine was completed in early January and the mine is anticipated to produce at higher levels than El Diamante.

Work is on-going at Carbhid two to access and develop additional deeper coal seams.

Alderon Iron Ore's affliate The Kami Mine Limited Partnership (Kami LP) has signed a power purchase agreement and security agreement with Newfoundland and Labrador Hydro for the Kami iron ore project in Canada.

Under the deal, NLH will sell electrical power and energy to the Kami LP.

Alderon said the power purchase agreement concludes a process that has been on-going since September 2011. The company has collaborated with the Province of Newfoundland and Labrador, and Nalcor to secure access to power, including paying upfront engineering costs of $4.4m.

The Kami Property, which is located next to the mining towns of Wabush, Labrador City and Fermont, includes 305 claims in Labrador for a total of 7,625ha.

Alderon carried out a total of 62,247m of drilling on the Kami property in 2010, 2011 and 2012.

Klondike Gold has completed a purchase and sale agreement with PJX Resources for the disposition of the Vine Extension property in Canada.

The property features 84 claims totalling 6,300ha, located near Cranbrook, British Columbia, Canada.

The property was initially optioned to PJX from Klondike under an option agreement, which allowed the company to acquire a 50% stake by spending $1.5m on exploration work and making share payments of 200,000 common shares over a five-year period.

As per the purchase agreement, which replaces the option agreement, PJX will not have to complete the remaining $1.4m on exploration work or pay the 200,000 shares, of which none has been paid to date.

PJX has acquired 100% of Klondike's interest in the property by issuing 700,000 common shares to Klondike.

Discovery Ventures has entered into an amended option agreement with 0951719 B.C. to acquire a 100% stake in the Willa property, which comprises 5,328ha located in the Slocan Mining Division, British Columbia, south of the town of Silverton B.C.

Discovery Ventures previously held an option to acquire an 80% interest in the Willa property.

The amended option agreement, which is subject to the approval of the TSX Venture Exchange, is consistent with the previously announced terms, except that it now includes the issuance of an additional 3.6 million common shares of Discovery upon the approval by the TSXV.

It includes the amended option agreement and $600,000 payable out of the cashflow from the Willa Max project, after repayment of any outstanding production financing.

Rocmec Mining has signed an agreement with MaXem Equipment (MaXem) of South Africa, for the distribution and usage of its patented thermal fragmentation mining method.

Under the deal, MaXem will have rights for the distribution, deployment and usage of Rocmec's patented thermal fragmentation mining method in the southern portion of Africa.

Rocmec will have a 50/50 share of net profits from thermal fragmentation contracts carried out by MaXem and a working relationship for the continued development and promotion of the technology.

Rocmec is active in the exploration and the development of gold resources in Québec and Peru.

The company holds a gold property with resources recognised in accordance with NI43-101, a modular treatment plant and also a license for the thermal fragmentation mining method for exploiting narrow-vein ore deposits.


Image: File image. Photo: courtesy of freedigitalphotos.net/Chaiwat.

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