Hand shake

Australia-based silver miner Alcyone Resources has signed a A$25m financing deal with investment management firm Platinum Partners.

Alcyone has also agreed to acquire the Red Arrow mine in the US for A$5m.

The acquisition will be funded by way of a A$1m equity issue with Platinum, completed on execution, and a A$4m convertible loan note, to be drawn on release and grant of security changes.

The Red Arrow gold and silver mine is located 13km northeast of Mancos in the La Plata Mining District, Montezuma County, Colorado, US.

The property features 370 acres of patented mining claims and 160 acres of unpatented mining claims.

Alcyone said the mine has historically produced commercial-grade gold and silver ore and, according to an independent geological survey conducted in January 2010, has the potential for extensive commercial development.

Xtract Resources has agreed to acquire the Chepica gold and copper mine in Chile.

The deal is for Xtract to purchase a 15% direct interest with an earn-in option over the remaining 85%.

The agreement also includes 100% of the Mejillones phosphate project in Chile.

Xtract Resources has signed the acquisition agreement with Polar Star Mining to acquire the entire issued share capital of its subsidiary, Polar Mining (Barbados).

Polar Mining (Barbados) is the parent company of a Chilean incorporated entity with a 15% direct interest and earn in option to acquire the remaining 85% interest in the Chépica gold and copper mine near Talca.

The mine target mill capability is 10,500oz gold equivalent per annum at a production cost of $700/oz.

Xtract Resources said the mine is in operation and is currently breaking even with positive cash flow targeted from April 2014.

Kent Exploration has agreed to acquire an 80% stake in the Bayhorse silver mine in east-central Oregon State, Canada, from American Cordillera Mining.

The Bayhorse property features three patented claims and ten lode claims totalling about 250 acres.

American Cordillera said that mining has been conducted intermittently at Bayhorse since the early 1920s and the mine last closed after the price of silver dropped to under US$6/oz in late 1984.

The mine has two existing accessible adits, the upper extending about 800ft westward into the hill and the lower extending about 500ft into the hill.

A work programme is underway on the Bayhorse property.

Stellar Diamonds and Société Tassiliman have signed a joint venture agreement (JVA) over a diamondiferous Baoulé diamond pipe located in the Aredor district of Guinea.

The 5h Baoulé pipe is situated in Aredor with historical data suggesting a diamond grade range of between 13cpht and 40cpht.

As per the deal, Stellar can acquire 100% interest of Tassiliman’s license area, which hosts the 5h diamondiferous kimberlite pipe, through $5m earn-in for 75% and option to acquire the remaining 25%.

On behalf of the JV company, Stellar will remain operator of the project at all times and will retain full rights to marketing the diamonds during production.

Stellar is currently generating an evaluation programme and budget, using the historic database as a guideline to re-assess the Baoulé pipe through drilling and bulk sampling.

European Uranium Resources (EUU) has signed a letter of intent (LoI) to acquire all of the outstanding common shares of Portex Minerals.

Under the LoI, European Uranium will merge with Portex Minerals in exchange for EUU common shares through a plan of arrangement and will change its name to European Minerals.

In exchange for each Portex Minerals common share, Portex Minerals shareholders will receive 0.6 of an EUU common share in exchange and PAX will become a wholly-owned subsidiary of EUU as part of the LoI, which is subject to approvals.

After completion of the merger, PAX shareholders will own about 65% of European Minerals and the remaining 35% will be held by EUU shareholders.

The binding LoI will be superseded by a definitive agreement to be negotiated between the parties.

Image: Several mining firms signed agreements this week. Photo courtesy of FreeDigitalPhotos.net.