BacTech becomes Scorpio

first_imgBacTech Mining has signed a Letter of Intent (LOI) with Scorpio Gold Corp (SGC), which is 93.5% owned by Toronto listed Scorpio Mining Corp (SPM), to acquire its gold assets in Nova Scotia and Quebec, in exchange for common shares of BacTech. The transaction will result in SPM becoming the controlling shareholder of BacTech. The resulting company, to be called Scorpio Gold Corp, will continue to pursue BacTech’s strategy of acquiring refractory gold and complex base metal projects for application of its proprietary bioleaching technology. The company will also have a portfolio of advanced stage development properties in Canada, and access to SPM’s expertise in Mexico for acquiring, developing, or operating complementary projects in Mexico.Commenting on the proposed transaction, Ross Orr, President and CEO of BacTech said, “After an extensive search for a new direction for BacTech, we are pleased to announce this new initiative for the company. We will still be able to pursue the four refractory projects we are currently working on, and, at the same time, develop near term production gold assets internally. Peter Hawley, Chairman and CEO of SPM, has over 20 years of experience in Mexico, and he will be instrumental in assisting us in identifying projects, both refractory and conventional, for the new company. In addition, SPM has built a solid infrastructure in Mexico which will provide us with access to resources that have only been available through consultants in the past.”Hawley commented: “Not only does this transaction add value to the Scorpio gold assets, it also allows us to open another avenue to develop the gold focus of SGC and to pursue cost effective, environmentally friendly avenues towards the exploitation of precious and base metals. We certainly look forward to developing the Company into a solid metal player within these exciting times.”The Scorpio Assets: Caribou Gold Mine: Located 80 km north of Halifax. SGC has the right to earn a 100% interest in this past-producing high grade gold mine, with potential to expand and upgrade the current NI 43-101 Inferred mineral resources of 350,305 t grading 8.41 g/t Au, uncut (94,763 contained oz of gold). An aggressive exploration and development plan has begun that includes surface diamond drilling, dewatering of the old mine shaft, erection of a head frame, a hoist system, supporting surface infrastructure, underground mapping and diamond drilling. Completion of this program will require additional financing and various alternatives are being considered to raise these funds. A bulk sample decision will be made based on the results of this program.Cochrane Hill Deposit: 100% owned, located in Guysborough County, Nova Scotia. Recently, this advanced property was optioned to Atlantic Gold of Australia. The current NI 43-101 resource study estimates an Indicated mineral resource of 588,794 t grading 0.191 oz/t Au (112,460 contained oz of gold) and an Inferred mineral resource of 29,422 t grading 0.165 oz/t. Atlantic Gold will work to increase these resources through a planned $4.75 million exploration program and will make $100,000 in cash payments over a four year period to earn a 60% interest in the project. Atlantic Gold’s main focus will be to look at the economic viability of an open pit mining operation.Lac Arseneault Property: Located in the Gaspé region of eastern Quebec, the property is a mid-stage exploration project in which SGC has an option to earn a 100% interest. High-grade gold-silver-zinc-lead mineralization is hosted in an extensive system of quartz veins and breccia zones. Previous work includes mapping, geophysics, trenching and diamond drilling.SPM has had a presence in Mexico for over nine years and, as such, has evaluated numerous properties which do not fit the mandate of the company but could potentially fit SGC’s plans. Initial reconnaissance by SPM has identified five gold showings worthy of follow up by SGC.last_img read more

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Osisko makes Bowmore Exploration acquisition

first_imgOsisko Mining Corp has signed a letter of intent with Bowmore Exploration pursuant to which the mining companies are to become strategic partners. Under the terms of the letter of intent, Osisko is to acquire C$3.0 million of a proposed C$4.2 million non-brokered private placement and, upon completion of the private placement; Osisko will have the right to appoint two nominees to Bowmore’s five member board of directors. Osisko’s primary business objective is the exploration and development of the flagship Canadian Malartic gold deposit, which currently has reserves totalling 6.28 Moz. It has also identified a number of grass-roots gold exploration opportunities in Canada and has selected Bowmore as an exploration partner to advance these projects. Bowmore currently has an option to acquire a 100% interest in the Santa Elvira gold-copper property in Mexico, which is of interest to Osisko. The parties believe that their strategic alliance should create shareholder value for both Osisko and Bowmore, as Osisko intends to involve Bowmore in exploration projects that would not be suitable for Osisko given its focus on the Canadian Malartic gold deposit, and thereby reduce Osisko’s exploration risk, and Bowmore will benefit from deal flow generated by Osisko, allowing it to use the proceeds for exploration work on Santa Elvira, new project acquisitions, development and for working capital purposes.Bowmore previously announced a C$1.0 million non-brokered private placement which has now been restructured as a C$4.2 million non-brokered private placement consisting of the sale of 21,000,000 units at $0.20 per unit for gross proceeds of C$4.2 million. Osisko will agree to acquire 15,000,000 units for gross proceeds to Bowmore of C$3.0 million and the remaining 6,000,000 units will be acquired by insiders of Osisko and Bowmore and by other accredited investors. Each unit consists of one common share of Bowmore and one-half of one common share purchase warrant.Upon closing of the private placement, Bowmore will have 37,728,984 shares outstanding on a non-diluted basis and 55,458,984 shares outstanding on a fully diluted basis, of which Osisko will own 15,000,000 shares (39.8%) of the shares outstanding on a non-diluted basis and 22,500,000 shares (40.6%) of the shares outstanding on a fully diluted basis.Sean Roosen, President and Chief Executive Officer of Osisko commented: “We are very pleased to announce this placement with Bowmore Exploration, a company that we believe has great depth and strength as an exploration group. As Osisko’s strategic partner in future grass-roots exploration projects, we are confident that Bowmore will be able to move quickly to evaluate opportunities of merit. This will allow Osisko to participate in grassroots exploration as a significant shareholder. Our goal is to enhance value for our shareholders by providing a solid pathway for the company’s future growth.”Osisko is currently developing the Canadian Malartic gold deposit and evaluating adjacent areas for a large-scale open pit, bulk-tonnage mining operation. The Canadian Malartic deposit is one of the biggest gold reserves in Canada for a single deposit, and is still growing through ongoing drilling on new mineralised zones. Osisko is well-funded with around C$450 million on hand.last_img read more

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