Metminco Limited Sale of Interest in the Los Calatos Project (2517J)
June 27 2017 - 2:43AM
UK Regulatory
TIDMMNC
RNS Number : 2517J
Metminco Limited
27 June 2017
AIM ANNOUNCEMENT 27 June 2017
SALE OF INTEREST IN THE LOS CALATOS PROJECT
-- Metminco settles sale of Los Calatos asset realising A$6.7 million (net of costs)
-- Proceeds to fund Miraflores Gold Project toward a Decision to Mine
-- Miraflores Gold Project expected to produce 50,000oz Au p/a over nine-year mine life
Metminco Limited ("Metminco" or the "Company") (ASX: MNC; AIM:
MNC) is pleased to announce that, further to the announcement of 14
June 2017, settlement of the sale of its 49% interest in Los
Calatos Holding Limited (LCH) to CD Capital Natural Resources Fund
III LP for approximately US$5 million (A$6.7 million) cash
consideration net of costs (the Sale).
The Sale represents achievement of another important milestone
for Metminco in its transition to becoming a gold producer. Funds
from the Sale will be applied to completion of the Miraflores
Feasibility Study and the lodgement of the Environmental Impact
Assessment (EIA) leading towards a decision to mine, subject to
mine development funding and EIA approval. The Miraflores
Feasibility Study is anticipated to be completed during Q3 2017
with the EIA expected to be lodged by the end of 2017. The Company,
subject to EIA approval, is targeting commencement of construction
of the proposed Miraflores gold mine and facilities during Q2 2018
with gold production targeted to commence in the first half of
2019.
The Company announced on 14 March 2017 an updated JORC Measured
& Indicated Mineral Resource of 9.27Mt @ 2.82g/t and 2.77 g/t
Ag containing 840,000oz Au and 826,000oz Ag for the Miraflores Gold
Project. The Miraflores Scoping Study released on 8 September 2016
estimated annual production of approximately 50,000oz per year over
the nine-year mine life at an average all-in sustaining cost of
US$648/oz with pre-production capital estimated to be US$81
million. The Miraflores Gold Project forms part of the Quinchia
Gold Portfolio which also includes the potentially highly
prospective gold porphyry prospects of Tesorito and Chuscal, which
have the potential to significantly enhance gold production from
the Miraflores plant and extend its life.
Mr William Howe, Managing Director, commented: "The Los Calatos
Sale provides the Company with the required funding to complete the
Miraflores Feasibility Study and EIA, two significant milestones
for the Company. The Sale enables the Company to advance Miraflores
where significant near term value exists.
Through the opportunistic acquisition of the Qunchia Gold
Portfolio last year the Company owns and is in control of a high
quality gold asset located in the Cauca region of Colombia. We
believe the planned development of the Miraflores gold mine will
provide the backbone for transforming the Company into a
significant gold producer. Tesorito and Chuscal are known gold
mineralised prospects that have the potential to considerably
enhance gold production from the planned Miraflores plant.
We expect to continue to deliver key milestones in the
advancement of Miraflores and look forward to reporting these to
our shareholders."
This announcement contains inside information as stipulated
under Article 7 of the Market Abuse Regulation (EU) No.
596/2014
William Howe
Managing Director
Metminco Limited ABN Suite 401, 6 Help Street,
43 119 759 349 Chatswood, NSW, 2067
ASX Code: MNC.AX; AIM Tel: +61 (0) 2 9460 1856;
Code: MNC.L Fax: +61 (0) 2 9460 1857
www.metminco.com.au
For further information,
please contact:
METMINCO LIMITED
Phil Killen Office: +61 (0) 2
9460 1856
NOMINATED ADVISOR AND BROKER
RFC Ambrian
Australia
Will Souter / Nathan Forsyth Office: +61 (0) 2
9250 0000
United Kingdom
Charlie Cryer Office: +44 (0) 20
3440 6800
JOINT BROKER
SP Angel Corporate Finance
LLP (UK)
Ewan Leggat Office: +44 (0) 20
3470 0470
PUBLIC RELATIONS
Camarco
United Kingdom
Gordon Poole / Tom Huddart Office: + 44 (0) 20
3757 4997
MEDIA
Media & Capital Partners
Australia
Luke Forrestal Office: + 61 (0) 411
479 144
Forward Looking Statement
All statements other than statements of historical fact included
in this announcement including, without limitation, statements
regarding future plans and objectives of Metminco are
forward-looking statements. When used in this announcement,
forward-looking statements can be identified by words such as
"anticipate", "believe", "could", "estimate", "expect", "future",
"intend", "may", "opportunity", "plan", "potential", "project",
"seek", "will" and other similar words that involve risks and
uncertainties.
These statements are based on an assessment of present economic
and operating conditions, and on a number of assumptions regarding
future events and actions that, as at the date of this
announcement, are expected to take place. Such forward-looking
statements are not guarantees of future performance and involve
known and unknown risks, uncertainties, assumptions and other
important factors, many of which are beyond the control of the
Company, its directors and management of Metminco that could cause
Metminco's actual results to differ materially from the results
expressed or anticipated in these statements.
The Company cannot and does not give any assurance that the
results, performance or achievements expressed or implied by the
forward-looking statements contained in this announcement will
actually occur and investors are cautioned not to place undue
reliance on these forward-looking statements. Metminco does not
undertake to update or revise forward-looking statements, or to
publish prospective financial information in the future, regardless
of whether new information, future events or any other factors
affect the information contained in this announcement, except where
required by applicable law and stock exchange listing.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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