Frontier Mining (AIM: FML), the Kazakhstan focused gold mining and exploration company completed its acquisition of a 50% interest in the Benkala copper-molybdenum-gold deposit located in north-western Kazakhstan from Coville Intercorp.
Frontier placed 6.25 million new shares with Coville Intercorp and issued a US$7.7 million convertible note to Coville in lieu of the final cash payment to acquire the 50% interest. The note is convertible at 14 pence per share for a period of 12 months. The total consideration paid to Coville is US$21 million.
Frontier will issue in total 85.5 million shares with a total value of US$25.4 million of which US$7.4 million will be used to fund working capital requirements for the Benkala development program and costs related to the transaction and placing.
A Competent Person Report on the Benkala Project completed by Wardell
Armstrong International in March 2007 estimated 47.75 million tonnes at an average grade of 0.36% Cu for the oxide mineralisation, and 873.75 million tonnes at an average grade of 0.30% Cu for the sulphide mineralisation.