JOHANNESBURG (miningweekly.com) – ASX- and Aim-listed Metminco has completed the acquisition of Minera Seafield, which owns the Quinchia gold asset portfolio, in Colombia, from RMB Australia.
Metminco announced in March that it had signed a heads of agreement with RMB Australia to acquire the portfolio in exchange for up to 400-million Metminco shares, A$7-million in cash payable over four tranches and up to A$7-million in royalties from operating cash flows.
Metminco on Tuesday said the acquisition was an excellent fit to the company’s strategy and capabilities.
“It paves the way for Metminco to become a gold producer with strong cash flows to fund its growth strategies, including the exploration of targets with the potential to increase gold resources,” it noted.
The Guinchia gold portfolio comprised the Miraflores deposit, a near-term development opportunity with a National Instrument 43-101-compliant resource of 1.88-million ounces of gold and 3.8-million ounces of silver; and the Dosquebradas deposit, with an inferred mineral resource of 920 000 oz of gold and 1.04-million ounces of silver.
RMB, RMB Australia’s South African parent company, still required clearance for the deal from the South African Reserve Bank, which was expected within two weeks.