Proactiveinvestors Australia

Proactive Investors Australia

Proactive Investors is the leading digital news and media group, dominating the "Small-Mid Cap" companies investor sector across four continents.  Proactive Investors Australia is a part of the largest global financial investor network with offices in Australia, Europe, Asia and North America. 

Pdf

Rio Tinto and Minera IRL strike deal for Ollachea payment

Friday, December 27, 2013 by Ian Lyall - Proactive Investors UK

Rio Tinto and Minera IRL strike deal for Ollachea payment

Latin America-focused gold miner Minera IRL (LON:MIRL) (TSE:IRL) said on Tuesday it will pay the entire first instalment owed to Rio Tinto (ASX:RIO) (NYSE:RIO) for the Ollachea gold mine in shares.

A previous agreement allowed for only 80% of the US$7.3mln first tranche to be satisfied in stock. The equity will be issued between January 7 and 11.

In all, Rio will receive US$21.5mln. The terms of the second instalment, due July 1, 2016, remain unchanged.

Ollachea, in Peru, is expected to be the company-maker. The construction permits are due toward the end of the first quarter of 2014, while the group is currently speaking to potential debt funders of the 100,000 ounce a year underground operation.

Minera also owns the producing Corihuarmi mine in Peru and Don Nicolas in Argentina.

The latter has been financed via US$45mln of investment direct to the project and a US$35mln bridging loan, and will go into construction phase next year, followed by production late 2014 or early 2015.

All-up average cash operating costs of Don Nicolas (US$578 an ounce) and Ollachea (US$583) mean the projects would survive in almost any realistic gold price environment.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

Sign up to Proactive Investors

Andrew McCrea's Research Reports
Sign up to Andrew McCrea's Research Reports and Receive Latest Research & Flash Trades
Receive Proactive Investors Newsletter, Investor Forum Invites
Receive Proactive Investors Newsletter, Event Invites, Special Stock Notifications

Comments from Proactive Investors readers

  • Fill in your details below:
Verification Code
Andrew McCrea is Sub Authorised Representative (SAR: 291331) of Proactive Investors Australia Pty Ltd
(ABN: 19 132 787 654) which is a Corporate Auhorised Representative (CAR: 413802) of RM Capital
Pty Ltd (AFSL: 221938).

Copyright © proactiveinvestors.com.au, 2012. All Rights Reserved