26th Mar 2020 18:15
(Alliance News) - Mineral & Financial Investments Ltd on Thursday said investee Cerrado Gold Inc has completed the acquisition of Minera Don Nicolas SA for an initial payment of USD15 million.
Mineral & Financial holds a 1.5% stake in Cerrado.
The mining investor said Cerrado has entered into an agreement with Compania Invesora En Minas SA and Compania Invesora Argentina Para La Exportacion SA to acquire Minera Don Nicolas and its namesake operating mine and surrounding properties in Santa Cruz, Argentina.
Cerrado paid an initial amount of USD15 million and will pay an additional USD10 million in 24 months, USD10 million in 48 months and USD10 million in 60 months. Additionally, it will pay a performance bonus based on a future increase in reserves.
Mineral & Financial said Don Nicolas could produce up to 50,000 ounces of gold annually for at least 7 years.
The stock closed 5.0% higher at 7.98 pence each on Thursday in London.
By Ife Taiwo; [email protected]
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