Canada-listed gold mining and exploration company Calibre has announced that it will buy joint venture (JV) partner Iamgold’s 70% interest in the Eastern Borosi gold/silver property, which it sees as the next potential “spoke” in its “hub-and-spoke” operating philosophy.
Calibre, which operates in Nicaragua, has surplus processing capacity of about 1.5-million tonnes a year at the Libertad Complex and will be launching technical studies in the fourth quarter to better understand how material from Eastern Borosi could be processed at Libertad.
“With the acquisition of Iamgold’s interest in the Eastern Borosi property, Calibre now controls 100% of a low-sulphidation, epithermal district that hosts numerous high-grade, gold/silver vein systems. The vein systems hosting the current 700 500 oz of inferred gold resources remain open to further expansion along with numerous undrilled targets,” said CEO Russell Ball.
He described Calibre’s JV relationship with Iamgold over the last seven years as “outstanding” and welcomed Iamgold as shareholders of the company.
Upon closing of the transaction, Calibre would issue Iamgold 2 253 961 shares in the company, representing $3-million based on the ten-day volume-weighted average price calculation. On the one-year anniversary of the transaction agreement, Calibre would pay Iamgold $1-million in cash. Iamgold would also retain a 2% net smelter royalty from the property.