Mineral & Financial Investments Limited (LON:MAFL) noted that investee firm Cerrado Gold Inc has made a new acquisition, picking up the Don Nicolas mine in the Santa Cruz province of Argentina.
The move is described as the first step in Cerrado’s goal of becoming an ‘intermediate producer’.
Cerrado is paying US$15mln upfront, with another US$30mln in staggered monthly payments (spanning up to 60 months from closing), to acquire the mine which can produce up to 50,000 ounces of gold per year, for at least seven years.
The operation is said to have a current all-in sustaining cost below US$1,000 per ounce and benefits from a recently built processing plant.
Mineral & Financial holds 625,000 shares, about 1.5%, in presently unlisted Cerrado which intends to “seek a path forward to become a public company.”