PERTH (miningweekly.com) – ASX-listed Troy Resources has struck a share sale agreement with fellow listed Austral Gold to divest of its remaining 30% interest in the Casposo mine, in Argentina.
Austral would pay $200 000 for the outstanding common shares of Casposo Argentina, a Troy subsidiary which holds the Casposo mine.
Austral acquired an initial 70% interest in the project in 2016 and has been manager and operator of the project since then. The operation was placed on care and maintenance in April this year.
The decision was based on lower than budgeted silver prices and less than expected production in 2018 and 2019, which resulted in the mine operating at a loss and markedly reducing the inventory of mineral reserves of the project.
Austral at the time said that it would increase exploration activities at Casposo with a focus on certain advanced targets, and would explore opportunities to process third party ore from deposits surrounding the mine to position Casposo as a central processing hub and toll treater for local exploration and development companies.
Austral CEO Stabro Kasaneva said that the company was pleased to own 100% of Casposo, and to continue with its exploration programme launched last month.
“We are also assessing opportunities to consolidate surrounding projects and source ore from third parties. All these initiatives are part of our business strategy to consolidate mineral resources with the goal of recommencing mining operations at Casposo.”
Troy CEO Ken Nilsson on Monday said that the company was pleased to have resolved the ownership issue of the Capsoso mine.