TORONTO (miningweekly.com) – Argentina-focused Samco Gold on Friday announced that it had signed an agreement to buy two Peruvian subsidiaries of Mantaro Resources for about $3.4-million in cash and scrip, which would give it control over exploration and mining concessions over the Dino polymetallic property.
Samco would also assume about $4.5-million in debt and unpaid interest thereon, making scheduled cash down payments over three years from closing.
Located about 180 km east-northeast of Lima, with excellent local and regional infrastructure, the Dino property comprises 5 510 ha of continuous concessions hosted within Pucara group carbonates with significant potential for carbonate replacement deposit- (CRD-) style mineralisation.
TSX-V-listed Samco reported that extensive geophysical, geochemical and geological studies had been carried out to date, and underground and surface exposures had indicated significant exploration potential for CRD-style zinc/lead/silver mineralisation.
After closing the transaction, expected in about four months’ time, Samco would hit the ground running with a drill plan for 2015 that had already been drawn up and ready for immediate implementation. The environmental permits required for drilling had already been approved.
Further, Mantaro had already started environmental studies to start underground mining operations.
Samco said the acquisition brought geographical and commodity diversification to its portfolio.
"With the agreement announced today, Samco has taken an important step forward in its strategy of seeking to acquire and develop assets of significant potential. By gaining exposure to Peru as a key mining and zinc-producing region, we have also diversified our asset base and provided the company with enhanced optionality in terms of our exploration, development and potential production activities,” Samco executive chairperson and CEO Charles Koppel said.
He added that notwithstanding difficult market conditions, 2014 had been a busy year for Samco. “We will continue to seek further opportunities to add value to our quality asset portfolio both through corporate activity and the ongoing exploration and development of our properties in Argentina and Peru,” he said.
The deal was subject to a number of customary conditions, including Samco completing a minimum $5-million financing.
Samco’s TSX-V-listed stock closed 22.22% lower on Friday, losing C$0.10 a share at C$0.35 apiece.