PERTH (miningweekly.com) – ASX-listed Titan Minerals has inked a term sheet to divest of its Zaruma gold mine and the Portovelo process plant, in Ecuador, for $15-million.
The noncore Zaruma mine comprises 30 concessions over 7 615 ha, which is currently being transferred into newly established entities as part of Titan Minerals’ corporate restructure.
The Portovelo process plant is a fully operational carbon in pulp operation some 9 km from Zaruma.
Titan Minerals told shareholders on Thursday that the asset sale, along with the ongoing in-country strategic review and corporate restructure, would allow Titan to resolve the balance sheet issues inherited following the acquisition of Core Gold in 2020.
The cash proceeds would also allow the company to focus its attention on the development of its flagship Dynasty gold project and exploration at the Copper Duke project, in Ecuador.
“Titan’s core focus remains firmly set on developing the Dynasty gold project and making a discovery at the Copper Duke project. The sale of the Zaruma mine and the Portovelo process plant strengthens our balance sheet and allows us to reduce and manage the liabilities we inherited following the Core Gold acquisition,” said Titan MD Laurie Marsland.
“Given the improvement in our financing position as a result of this noncore asset sale, we expect to continue drilling and deliver an updated Joint Ore Reserves Committee-compliant resource at Dynasty following the completion of the Cerro Verde drill programme.”
The asset sale was subject to the parties finalising and executing a formal transaction agreement, and the buyer finalising a due diligence investigation over the next 30 days.
Titan is expected to receive proceeds from the sale in staged cash payments, along with a 2% net smelter return royalty on the value of recovered and realizable copper produced from the Zaruma mine concession.