3rd May 2016 08:51
LONDON (Alliance News) - Metminco Ltd Tuesday said it had made a "decisive move" towards diversifying into gold with its acquisition of the Quinchia gold Project in Colombia in the first quarter of 2016, as it continues to focus on securing a funding partner for its Los Calatos project in Peru.
Metminco agreed to acquire the Quinchia project from RMB Australia Holdings Ltd in the quarter, and it expects this acquisition to be completed by the end of May. The project has an estimated mineral resource of 2.8 million ounces of gold.
Within this project, Metminco is focused on progressing the Miraflores deposit, intending to complete a feasibility study for Miraflores before the end of the year, followed by the submission of a mining plan and application for all operating permits to relevant mining authorities.
"Through the acquisition of the Quinchia Gold Project during the quarter, the company has made a decisive move towards diversifying into gold. The project represents an excellent fit to the company's strategy and capabilities, and has the potential to provide Metminco with a near term cashflow opportunity and significant upside potential through exploration," said Managing Director William Howe in a statement.
Elsewhere, at Los Calatos, Metminco is in negotiations to secure a funding partner through the completion of a feasibility study, it said.
Shares in Metminco were up 2.8% at 0.200 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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