PERTH (miningweekly.com) – The share price of ASX-listed Equus Mining increased by nearly 17% on Monday, after the company announced that its Los Domos gold/silver/zinc/lead project had been identified as a key investment project by the Chilean Ministry of the Economy.
The company told shareholders that the Chilean government has identified the project as a sustainable investment project, and one that is key for generating economic growth in Chile’s XI region.
Los Domos is adjacent to the Cerro Bayo gold/silver mine, which produced some two-million ounces a year of silver and 20 000 oz a year of gold before production was suspended indefinitely and a force majeure was declared following a mine flooding event in June of last year.
Equus in 2016 struck an earn-in and purchase agreement with Terrane Minerals to acquire the Los Domos project, and is currently earning a 51% equity in the project through a sole-funded drilling programme.
The company has a two-year option to acquire the remaining 49% interest in the project by issuing Terrane A$450 000 worth of ordinary shares, at an issue price of 1.2c each.
Equus shares were trading at a high of 2.9c a share on Monday, up from an opening price of 2.4c a share.