- Write by:
-
Thursday, July 23, 2020 - 6:25:17 PM
-
827 Visit
-
Print
Mining News Pro - Canada’s Karora Resources (TSX: KRR), formerly known as RNC Minerals, is selling its 28% interest in the Dumont project in Quebec, one of the globe’s largest undeveloped nickel assets, to two private funds advised by Waterton Global Resource Management, for a total of up to $48 million.
The move, the Toronto-miner said, would allow it to focus on becoming a profitable, mid-tier gold miner.
As part of the deal, Karora will have the right to receive a portion of future proceeds of any future sale of Dumont or other monetization event. It will be entitled to 15% of the net proceeds per sale, up to a maximum of $40.2 million.
“The structure of the deal provides immediate cash to Karora to further invest in increasing our gold production, cost reduction initiatives and aggressively explore our numerous high-quality exploration targets at our Beta Hunt and Higginsville operations,” chief executive Paul Andre Huet said in the statement.
Karora will receive $10.7 million, consisting of $7.4 million from Waterton for its interest and a $3.3 million refund of Karora’s share of the cash held within the Dumont joint venture.
Waterton will become the operator and manager of the Dumont project upon closing of the deal, which is expected before the end of July.
Dumont is a shovel-ready and permitted nickel-cobalt-PGM development project.
Once in production, it is expected to produce an average of 39,000 tonnes of nickel over a 30-year mine life at all-in sustaining cash costs of $3.8 per pound.
Short Link:
https://www.miningnews.ir/En/News/572270
The secretary-general of the International Seabed Authority is set to run for a third term leading the United ...
First Quantum Minerals is looking forward to talks with the new administration in Panama and to work together to find a ...
Albemarle, the world’s largest producer of lithium for electric vehicle batteries, on Wednesday missed first quarter ...
The US and the Philippines are in discussions over ways to prevent China from dominating nickel processing in the ...
Glencore expects profit at its trading division this year to be at the top end of its long-term annual guidance, in an ...
Eramet subsidiary SLN’s nickel mining operations in northern New Caledonia have been suspended, adding to difficulties ...
Brazilian miner Vale on Wednesday said lower prices for iron ore, nickel and copper in the first quarter dragged down ...
BHP Group Ltd. proposed a takeover of Anglo American Plc that values the smaller miner at £31.1 billion ($38.8 billion), ...
Interros, Nornickel’s largest shareholder, on Monday called allegations by fellow shareholder Rusal about undervalued ...
No comments have been posted yet ...