Deals this week: Liberty Mines, Tungsten Mining, Centrex and more

5 September 2013 (Last Updated September 5th, 2013 18:30)

Liberty Mines has agreed to acquire the Snow Lake gold project in Manitoba from QMX Gold for $20m.

Mining

Liberty Mines has agreed to acquire the Snow Lake gold project in Manitoba from QMX Gold for $20m.

The Snow Lake gold project's assets include the New Britannia Mine with associated plant, infrastructure, and equipment, as well as a 2,150 tonne-per-day modern mill and tailings facility.

A feasibility study conducted in 2010 revealed that the property has proven and probable reserves totalling 3.5 million tonnes at 4.04 g/t Au or 451,900 contained ounces of gold.

The mine is expected to average 83,000oz of gold per year for five years at a recovery of 93.3% Au.

The transaction, which is subject to government, shareholder and regulatory approvals, is expected to be completed on or before 25 November 2013.

Tungsten Mining has signed a memorandum of understanding (MoU) with a Chinese investment group for share placement and off-take agreement.

Under the MoU, a number of Chinese company's clients will invest up to A$15m in Tungsten Mining.

The investment will take place through a share subscription which would be undertaken in three tranches.

The first tranche will feature about 12.5 million shares to raise A$2.5m by the end of September 2013.

The second tranche, which will have an equal number of shares as the first, is expected to be issued by the end of October 2013.

The third tranche, which will feature about 30.3 million shares, will raise A$10m to be issued by May 2014.

Tungsten Mining said that subject to the A$15m being raised, the MoU also provides a definitive offtake agreement under which the investors would be entitled to purchase 50% of the Kilba project's tungsten concentrate production at a discount to the prevailing market price.

Centrex has signed a memorandum of understanding with its joint venture (JV) partner Wuhan Iron & Steel (Wisco) to reschedule the development of the Fusion iron-ore project, in line with changing market conditions.

Both the companies expect to start an exploration programme at new deposits within the Fusion tenement to allow better mining selectivity and to reduce estimated mine production costs.

Centrex said the results from the exploration programme would then be moved into a new prefeasibility study (PFS) on the Fusion project, which is expected to be undertaken in the next 12 to 24 months.

The companies plan to contribute an additional A$10m to the project on top of the existing A$9m, to fund the completion of the new PFS.

Nevada Gold has agreed to acquire a 75% interest in a former producing high grade silver, lead, gold mine located in Nevada.

The property is situated on the east end of the northeast-trending Midas trend, one of Nevada's various epithermal gold belts.

The property covers a portion of the Island Mountain mining district which was first prospected in the 1860's, following the discovery of one of Nevada's largest placer gold districts with 40,000oz of production in streams draining the area.

Junior Iron Ore Holdings (IOH) has divested its North Marillana group of satellite tenements in Western Australia to Maiden Iron for about A$7.75m.

The North Marillana satellite tenements are made up of four mining leases and two exploration licences.

The mining leases include a joint ore reserves committee-compliant indicated resource of 15.6 million tonnes, grading 54% iron.

As per the deal, Maiden Iron will pay A$2.5m to acquire the mining leases and a 12-month option over the exploration licences.


Image: Several agreements were signed this week. Photo: courtesy of Freedigitalphotos.net.

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