Newrange Gold Corp. (TSX-V:NRG, OTCQB:NRGOF) announced that it has signed a share purchase agreement with Great Panther Mining Limited (TSX:GPR, NYSE:GPL) to acquire a 100% interest in the Coricancha gold-silver-copper-lead-zinc mine in Peru.
The precious metals explorer said Coricancha is a high-grade, narrow-vein, underground mine in Peru’s Central Polymetallic Belt, which was in production intermittently from 1906 to 2013 and has been on care-and-maintenance since then but is in excellent shape and is fully permitted.
“We anticipate filing all required documents with the TSX Venture Exchange this week, including a NI 43-101 technical report, as the acquisition is subject to exchange approval,” Newrange Gold CEO Robert Archer said in a statement.
READ: Newrange Gold acquires Coricancha mine in Peru from Great Panther Mining
“In parallel, we are working on a financing to ensure that we have adequate cash for not just the acquisition but for working capital and a drilling program,” Archer added.
The company noted the mine site also contains a 600-tonne per day processing plant, dry-stack tailings storage facility and all necessary surface and underground infrastructure.
Under the terms of the agreement, Newrange will pay US$750,000 in cash for 100% of Great Panther’s Peruvian subsidiaries, Great Panther Silver Peru SAC and Great Panther Coricancha SAC.
Vancouver-based Newrange Gold is focused on district-scale exploration for precious metals in the prolific Red Lake District of northwestern Ontario. The past-producing high-grade Argosy gold mine is open to depth, while the adjacent North Birch project offers additional blue-sky potential.
Contact Sean at sean@proactiveinvestors.com