Ireland-based IMC Exploration has announced a conditional agreement to buy the Karaberd gold mine, in northern Armenia, thereby expanding the geographical scope of its operations.
London-listed IMC will buy the entire issued share capital of MVI Ireland from Mineral Ventures Invest, a reverse takeover.
MVI holds the entire issued share capital in Assat, which has the operating licence for Karaberd, together with an ore-crushing production facility located near the site of the mine.
IMC chairperson Eamon O’Brien says the acquisition of the Karaberd mine and the development of the Karaberd ore-crushing facility will be transformational for the group, taking it from being a purely junior mining exploration company to being both a mining exploration company and a mining company.
“The proposed acquisition will transform IMC by adding a mining project and will generate cash-flow for IMC from both the monthly contribution to working capital and future mining operations. Furthermore, the geographical reach of IMC will be extended outside of Ireland which may lead to further opportunities for growth of IMC,” he adds.
To date, IMC has been concentrating on its spoils and tailings polymetal project in Avoca, Wicklow, and its gold exploration project in North Wexford.
Shares in IMC surged 70% to 1.43p each on Thursday..