Deals this week: Mission Mining, Pacific Iron Ore, Marifil Mines and more

30 May 2013 (Last Updated May 30th, 2013 18:30)

Mission Mining Company has inked an agreement with Colten Metals to lease, mine, and operate the El Dorado Mine in California.

Deals this week: Mission Mining, Pacific Iron Ore, Marifil Mines and more

Mission Mining Company has inked an agreement with Colten Metals to lease, mine, and operate the El Dorado Mine in California.

The mine is spread across 340 acres located in San Bernardino County and holds large quantities of gold, platinum and rhenium deposits.

Through this deal Mission Mining hopes to become one of the largest mining companies in North America.

Pacific Iron Ore has signed an agreement with a private British Columbia-based firm to divest its stake in the Pearson Project's iron ore properties located at Vancouver Island for $5.6m.

Once the transaction is completed the firm is planning to focus on its St. Anthony's gold project located in the Kenora Patricia mining district of Ontario, Canada.

Marifil Mines (Marifil) has entered into a deal with Southern Copper Argentina, a subsidiary of Southern Copper, to acquire a 70% stake in the company's Cerro Samenta porphyry copper project in Salta Province, Argentina, which will give Marifil extra cash.

As per the terms of the arrangement, the Southern Copper subsidiary will pay Marifil a total amount of $375,000 over four years, including $75,000 to be paid upon signing the agreement, in exchange for the stake.

SCA will undertake a minimum $4m work programme at the location for four years.

Glen Eagle Resources has signed an agreement with Ministry of Mines and Energy in Nicaragua through its subsidiary Sandgold SA to recover gold from the tailings located in Chontales and remove the mercury content in the process.

Under the agreement, Glen Eagle will not be considered liable for any earlier contamination by small miners in the gold extraction process.

Sandgold has also signed an agreement with the Santo Domingo Small Miner's Coop in Chontales to extract gold from their tailings.

Canasil Resources, a Canadian exploration company, has signed a binding letter of agreement with MAG Silver to offload a 70% stake in its Salamandra silver-copper-zinc-lead project in Durango State, Mexico.

As per the terms, MAG will acquire the total stake in the project in two installments. For the initial 55% stake, it will pay $5.5m towards exploration expenditures alongside a payment of $750,000 to Canasil over four years, which includes $150,000 to be paid upon signature of the agreement.

For the remaining 15% interest, MAG has been given an option to either prepare or deliver to Canasil a NI43-101 compliant feasibility study within four years, or invest an additional $20m towards exploration expenditures over four years, with a minimum annual expenditure of $2.5m.


Image: Several mining deals were signed this week. Credit: worradmu / FreeDigitalPhotos.net.

Energy Technology forum on LinkedIn