Hochschild Buys Controlling Interest In Inmaculada Project
October 13 2010 - 2:42AM
Dow Jones News
Hochschild Mining PLC (HOC.LN), said Wednesday that it has
reached an agreement with its joint partner International Minerals
Corporation to increase its stake in Inmaculada, a 20,000 hectare
gold-silver project located within its existing cluster in southern
Peru.
MAIN FACTS:
-Value accretive acquisition to increase holding in Inmaculada
to a controlling 60% interest
-Initial cash consideration of $15 million and agreement to fund
100% of the project's first $100 million of capital expenditure
-$20 million private placement in joint venture partner,
International Minerals Corporation
-Commitment by the joint venture to complete 20,000 meters of
drilling annually for the first three years in areas outside of the
main Angela vein
-Potential to generate pre-tax cashflow of $1,026 million
non-discounted, $699 million at a 5% discount rate and $483 million
at a 10% discount rate
-Estimated average annual total silver equivalent production of
11 million ounces
-Estimated average annual attributable silver equivalent
production of 6.6 million ounces, representing 25% of Hochschild's
anticipated 2010 production
-Feasibility study to be completed by the end of 2011 with
production to commence in 2014
-Main Angela vein remains open with significant additional
upside potential in several other structures within the
property
-Shares closed Tuesday at 437 pence, valuing the company at
GBP1.6 billion.
-By Razak Musah Baba, Dow Jones Newswires; 44-20-7842-9275;
razak.baba@dowjones.com
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