8th Sep 2014 08:57
LONDON (Alliance News) - Natural resources company Rose Petroleum PLC Monday said its Minerales VANE SA de CV subsidiary has entered into a joint venture agreement with Minera Pafex SA de CV regarding the latter's concessions located near Los Mochis in western Sinaloa, Mexico.
The deal involves the Charay, Charay 2 and San Luis concessions held by Minera Pafex, which host the high-trade Mina-Charay gold and silver mine.
Under the new agreement, Minerales VANE will be responsible for developing and mining the Mina Charay deposit, with profits from the mine to be split 60:40 in favour of Minerales VANE. Minerales VANE has assumed full liability for operating costs at the mine until cash flow from the site is sufficient to cover these.
Minerales VANE has already hired mine design and consultant mining engineers for the site, with actual development and mining at the site due to start in the next 30 to 60 days once the blasting permit is received, Rose said.
"The Mina Charay project is a high-grade, shallow target, which provides an excellent opportunity to increase mill grades and assure stable production over at least the next three years," said Rose Chief Executive Matthew Idiens.
"We have a good understanding of the project due to our previous work programme. We expect the project to provide additional cash flow and provide additional capital for exploration in the near term," Idiens added.
Rose shares were up 4.7% to 3.53 pence in morning trade on Monday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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