Deals this week: Lundin Mining, Ascot Mining, Fortuna and more

24 January 2013 (Last Updated January 24th, 2013 18:30)

Diversified Canadian base metals mining company Lundin Mining, through a newly formed joint venture entity, has signed a definitive agreement with OM Group to acquire a large scale cobalt chemical refinery located in Kokkola, Finland.

Diversified Canadian base metals mining company Lundin Mining, through a newly formed joint venture entity, has signed a definitive agreement with OM Group to acquire a large scale cobalt chemical refinery located in Kokkola, Finland.

Under the agreement terms, Lundin Mining and its partners will pay an initial consideration of $325m on a 100% basis at closing, with the potential for additional consideration of up to $110m payable over three years.

Ascot Mining, which has gold mining and milling operations in Costa Rica, has signed a binding heads of terms with Lewis and Associates Acquisitions.

Lewis will provide $10m in funding in exchange for convertible preference shares at an annual interest rate of 6%.

The funds will enable Ascot to "clear the debt of its major current lender, re-commence and greatly expand production, complete further exploratory work in its resources area and create a significant working capital position," Ascot said.

Silver and base metal producer Fortuna Silver Mines has agreed to acquire a 55% interest in the Taviche Oeste concessions for $4m from Plata Pan American, a wholly owned subsidiary of Pan American Silver.

Cuzcatlan will purchase the remaining 45% undivided interest in the property for $6m, once a production decision is made to develop ore from the concessions.

Astra Resources is considering the purchase of up to three iron ore mines in the Keonjhar district, located in the Indian state of Orissa.

These mines, comprising an estimated reserve of 500 million tonnes of iron ore, have been identified as compliant with Astra's mining criteria.

Cambodian gold explorer Angkor Gold has completed the previously-announced sale of a 78km² subsection in its 300km² Oyadao tenement to All Solutions of Cambodia, a privately held company in partnership with Chinese gold miner Canxiang Mining.

Angkor received a total payment of $2.4m from All Solutions following the issuance of the new exploration licence.

Mukuba Resources will acquire all copper assets held by Benzu Resources in the Katanga Copper Belt of the Democratic Republic of Congo.

As part of the transaction, Mukuba will raise a minimum of $2m and consolidate the Cominex Project in the country.