Newmont Mining, the US-based gold producer, has entered into a stock purchase agreement with Klondex Mines to offload the company's Midas underground operation and mill complex in Nevada.
The all-stock deal amounts to a total consideration of over $83m, including a cash payment of $55m and the remaining $28m represents Newmont's arrangements with Nevada and federal regulatory authorities.
Further, Klondex will issue 5 million common share purchase warrants with a 15-year term and the exercise price is to be determined on the closing date.
Currently subject to necessary approval conditions, Newmont is intending to close the agreement by early 2014.
GoGold Resources, a Canadian mining company, has inked a binding agreement with Animas Resources to completely acquire the Santa Gertrudis gold mine located in Sonora Mexico.
As per the terms of the agreement, GoGold will pay a total of $5m, of which $250,000 has been deposited upon the signing of agreement, with the outstanding amount to be paid upon execution of the agreement.
Through this arrangement, GoGold will wholly acquire all the Animas' Mexican subsidiaries that have a stake in the Santa Gertrudis gold mine.
GoGold has completed its due diligence. The definitive agreement is subject to all necessary regulatory approvals.
The buyer is also liable to pay a 3% net smelter returns royalty for gold and silver and a 2% net smelter royalty for all other metals on the project and, from 1 January 2017, an advance annual royalty of $250,000 for a period of four years if the mine is not in production.
GoGold, however, also has an option to purchase one-third of the NSR by making a cash payment of $5m.
New Jersey Mining Company, an American miner, has struck an all-stock agreement to acquire Idaho Champion Resources for 5 million restricted shares of NJMC common stock.
Through this agreement, New Jersey Mining will takeover a portfolio covering an area of 4,250 acres, which includes an exclusive license for the McKinley project, the McKinley Mine, the Ibex Mine, and the Big Easy Mine, in central Idaho near the town of Lucille in the Simpson Mining District.
Under the terms of the Memorandum of Agreement, New Jersey Mining will secure rights and agreements, intellectual property, historic and recent due diligence, surveys, and maps owned by Idaho Champion,
In addition, the acquirer will also obtain a 12-month option to purchase the historic McKinley Mine, located on 62 acres within the overall land package.
Strateco Resources is set to sell its Apple property in the James Bay region of northern Quebec from Canada Strategic Metals, after both the companies signed a formal agreement.
As per the agreement, Canada Strategic Metals is expected to make a cash payment of $10,000 and issue 4,000,000 shares of Canada Strategic Metals.
The common shares are said to be subject to resale restriction periods with every 800,000 stocks having a period limit of four months, nine months, 12 months, 18 months, and 24 months after securing approval from TSX-V.
Meanwhile, the agreement also provides for a 2% NSR royalty payable to Virginia Mines, half of which can be obtained back for $1m.
The Apple property comprises 147 claims over an area of 75km² located 80km southeast of Radisson in the James Bay region.
Goldcliff Resource has entered into a sale and purchase agreement with Badger Minerals to offload a 25% interest in Goldcliff's Tulameen copper property.
To acquire the quarter stake in the property, Badger is liable to undertake a $250,000 exploration program by November 2014 and pay $25,000 upon signing the agreement.
Following the conclusion of the exploration program, Goldcliff and Badger will form a joint venture to further develop the property, with the former investing 75% of the funds and Badger investing the remaining 25%. Goldcliff will be the project operator throughout.
The $250,000 exploration program will include drilling the Whipsaw Trojan-Condor target.
The Tulameen Copper Project is located near Princeton, British Columbia, Canada and within the Copper Mountain Camp approximately eight kilometers southwest of the operating Copper Mountain Mine.
Image: Several mining companies signed agreements this week. Photo courtesy of tungphoto/FreeDigitalPhotos.net.