Canada-based international gold mining company Dundee Precious Metals (DPM) has invested C$10-million in Ecuador-focused INV Metals, which is advancing the Loma Larga project.
DPM’s investment, which formed part of a C$15.6-million private placement at C$0.40 a share, has turned the company into a strategic shareholder in INV, representing a 19.5% equity interest.
As part of its strategic ownership interest, DPM is expected to provide mining, processing, environmental and permitting expertise to assist INV Metals in advancing the Loma Larga project.
DPM owns and operates the Chelopech mine, in Bulgaria, an underground copper/gold mine, which has similar characteristics to the Loma Larga deposit with respect to geology, planned mining method and processing flow sheet. DPM has also recently completed the successful permitting, construction and ramp-up of the Ada Tepe gold mine, also in Bulgaria, which is the first mine permitted within the Natura 2000 ecological network in Europe.
IVN says that DPM's Tsumeb specialty smelter, in Namibia, could potentially be used to process the complex copper/gold concentrate from Loma Larga.
INV CEO Candace MacGibbon said that the proceeds from the private placement would be used to advance the environmental permitting at Loma Larga and for drilling at the Tierras Coloradas gold target once permits were received.
Canadian miner Iamgold has confirmed it will participate in the private placement to maintain its pro-rata share ownership of about 35.6%.
INV closed 7% higher at C$0.36 a share on the TSX on Monday.
Edited by: Creamer Media Reporter
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