Deals this week: SEMAFO, Exterra Resources, Firesteel Resources and more

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

Canada-based mining company SEMAFO has signed a deal to sell its stake in the Samira Hill gold mine in Niger to Middle Island Resources.

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Canada-based mining company SEMAFO has signed a deal with Middle Island Resources to sell its 100% stake in the African GeoMin Mining Development Corporation, which holds 80% interest in Société des Mines du Liptako.

Société des Mines du Liptako owns Samira Hill gold mine in Niger.

According to the terms of the deal, Middle Island will make a cash payment of $1.25m and a fixed net smelter return royalty of 1.2% on gold sold from the mine to SEMAFO.

However, the royalty is to be paid only if the gold price is at or greater than $1,450 per oz and is capped at $12m.

The agreement is subject to several conditions including regulatory approvals.

SEMAFO currently operates three gold mines: Mana mine in Burkina Faso, Samira Hill mine in Niger and the Kiniero mine in Guinea.

Junior miner Exterra Resources has entered into a one-year ore processing agreement with Saracen Mineral.

Under the agreement, Exterra would mine, sample and haul ore from the Second Fortune mine in Western Australia, and would pay a fixed fee for every dry tonne for the treatment of the ore at Saracen's Carosue Dam processing plant.

The Carosue Dam plant is located approximately 90km from the Second Fortune site.

Saracen would in turn pay Exterra for the recoverable metal, based on an agreed grade.

Firesteel Resources has entered into a definitive agreement with Prosper Gold to acquire around 80% interest in the 6,829ha alkalic porphyry copper-gold Sheslay Property in north-west British Columbia.

The Sheslay Property, earlier known as the Copper Creek Property, is located approximately 50km north-west of Telegraph Creek.

"According to the terms of the deal, Middle Island will make a cash payment of $1.25m and a fixed net smelter return royalty of 1.2% on gold sold from the mine to SEMAFO."

According to the terms of the deal, Prosper has been appointed as the operator of the property and has the exclusive responsibility of administering and carrying out the exploration programmes.

Sona Resources, a gold resource company, has entered into a mineral property option agreement with Lu'An (Canada) Capital & Energy Investment.

Under the terms of the deal, Sona Resources will acquire 100% interest in Mineral Creek Gold Property.

The Mineral Creek Gold Property comprises 49 mineral claims and totals 10,273ha.

It is located on Vancouver Island, British Columbia, approximately 10km east of the town of Port Alberni.

Initially, Sona Resources will complete 5,000m of diamond core drilling at Mineral Creek site on or before the fourth anniversary of the effective date.

On or before the sixth anniversary of the effective date, the company will have to finish another 5,000m of diamond core drilling at the site.

Canada-based mining company Teck Resources has entered into a joint venture agreement with Copper Fox Metals to jointly develop the Schaft Creek property in northern British Columbia.

According to the terms of the agreement, Teck will own a 75% stake in Schaft Creek, while Copper Fox will hold the remaining stake in the copper-gold exploration property, which is located 80km south of Telegraph Creek in north-west British Columbia.

Initially, Teck will make a payment of $20m to Copper Fox and an additional $20m will be paid following a decision to bring the property into production.

Teck has also agreed to pay an extra $20m upon the completion of mine construction, on top of funding the first $60m of costs of the joint venture before the commencement of production.


Image: Several deals were signed this week. Photo: courtesy of Suat Eman/Freedigitalphotos.net.

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