Nyrstar
Nyrstar to acquire 85% interest in Gold Hawk Resources Peruvian subsidiary
(Dorothy Kosich, Mineweb.com) Vancouver-based junior miner Gold Hawk Resources said it has entered into an agreement that will allow Belgium-based zinc and lead producer Nyrstar to acquire an 85% interest in the junior company's Peruvian operating subsidiary for US$15 million.
As part of the transaction, Nyrstar will assume Gold Hawk's guarantee in respect to its subsidiary Compania Minera San Juan's (Peru) (CMSJ) US$13 million senior debt facility payable in February 2010. Nyrstar has also agreed to loan up to US$20 million to CMSJ to fund re-start and expansion cost for the Coricancha Mine.
Following the all-cash offering, Gold Hawk will be debt-free, have US$15 million in cash and own a 15% interest in the Coricancha mine, which could be in production during the first half of next year. The $20 million Nyrstar loan to CMSJ is expected to be sufficient to finance the mine restart.
The transaction is expected to be completed in November 2009.
Coricancha is expected to annually produce 20,000 dry metric tonnes (dmt) of zinc concentrate, 15,000 dmt of lead concentrate, 45,000 ounces of gold and 2.4 million ounces of silver.
The CMSJ transaction is the second investment made by Nyrstar this week. The company acquired a 19.9% interest in Ironbank Gold's Citronen zinc-lead deposit in Northern Greenland.
Three weeks ago, Nyrstar also acquired the East-Tennessee Zinc Mine complex from Glencore Group for US$126 million. The complex includes three separate mines.
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