TRY reported cash balance of 36 millions on 30 September 2015
The 3.5 millions is supposed to be paid on 15 December 2015
And futher 1 millions commission to be paid later in a year time.
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VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/26/15 -- Magellan
Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") is pleased to announce
that it has reached an agreement with ASX listed Troy Resources Ltd.
("Troy") for the purchase of Troy's gold processing plant, associated
equipment and mining fleet ("Andorinhas Assets") at its Andorinhas
mine located in eastern Para state, Brazil.
Key components of the deal are as follows:
-- Magellan will pay Troy a total consideration of US$4.5M for the
Andorinhas Assets
-- The processing plant, which is scheduled to be decommissioned during Q4
CY 2015, consists of an 800 t/day crushing and grinding facility, a
gravity recovery circuit and a carbon-in-pulp recovery circuit
-- T
he mining fleet consists of drills, LHD's, trucks and other pieces of
mobile equipment that were used for underground mining at Andorinhas, as
well as all spares and consumables currently on site
-- Of the US$4.5M purchase consideration, Magellan will pay Troy a non-
refundable deposit of US$150,000 cash within 30 days. A further US$3.35M
is to be paid by 15th December 2015 and may, at Magellan's election,
comprise up to a maximum of 9.99% of Magellan's issued and outstanding
share capital at that time
-- An additional US$1M will be paid to Troy following the production of
20,000oz of gold or after 18 months, whichever comes soonest
-- Troy will have the ability to appoint a representative to the Magellan
Board should its shareholding in Magellan exceed 7.5%, or as otherwise
agreed
Troy previously operated the Andorinhas underground mine using
shrinkage and cut and fill mining methods accessed via a 5m x 5m
decline, which is very similar to the concept being developed for
Coringa. As such, the mobile fleet, stope mining equipment, and major
support equipment, such as fans and pumps, will be directly
transferrable for use at Coringa.
Magellan representatives have visited the Troy site and process plant
on two separate occasions in recent weeks and have observed that the
plant is running well, and is extremely well suited for use at
Coringa. The crushing plant consists of a jaw crusher feeding two
cone crushers, which feed a grinding plant with two ball mills. The
gravity section uses a Knelson concentrator, which feeds an ILR plant
(Acacia). The process section includes all tankage for leaching, CIP
and detox, followed by elution and electro-winning. The plant also
comes with a well equipped lab, gold room and sophisticated security
systems, and much of the electrical and control equipment is
containerized allowing for easy transport to and installation at
Coringa.
In addition, the agreement includes all spares, reagents and
consumables currently on site. Some of this miscellaneous equipment
and spares includes several kilometers of power cable and HDPE pipe,
electrical panels, power transformers, various pumps and maintenance
tools.
This agreement represents a major step forward for Magellan which is
expected to result in significant savings in terms of capital costs
and construction times. Magellan is currently working to finalize its
assessment of the impact of this transaction on the ongoing
feasibility study at Coringa. The focus will now be on securing
funding for the acquisition.
Alan Carter, President and CEO of Magellan commented: "This
represents a major step forward for Magellan in its drive to build
the high grade Coringa mine. The timing of the shutdown at Andorinhas
has been fortuitous for us. We plan to follow Troy's model of
building and operating mines in Brazil for the fast-track development
of Coringa. Let there be no doubt of our commitment to build this
mine."
John Kiernan, VP Project Development stated "Troy's Andorinhas plant
is currently operating well and is ideally suited for the scale and
process requirements of the Coringa property, providing immediate
capex savings relative to the previously published Preliminary
Economic Assessment, and shortened asset procurement lead times. The
fact that this deal also includes much of Troy's underground and site
mobile equipment plus remaining consumables and small tools further
enhances the opportunity for construction of a "fit for purpose" mine
plan at Coringa, that can grow into the full mine plan envisioned in
the feasibility work completed to date."
The agreement is subject to approval from the TSX Venture Exchange.
John Kiernan P.Eng, Magellan's VP Project Development and a
"qualified person" within the definition of that term in
NI 43-101,
has reviewed the technical information contained in this news
release.
Magellan Minerals (TSX VENTURE:MNM) is a TSX Venture Exchange listed
exploration and development company with two advanced gold properties
in the Tapajos Province of northern Brazil. The Coringa project
contains underground Measured resources of 110,000oz of gold (0.27Mt
@ 12.8g/t gold) and underground Indicated resources of 443,000oz of
gold (1.91Mt @ 7.2g/t gold) as well as Inferred resources of
360,000oz of gold (2.0Mt @ 5.4g/t gold) at a cut-off of 2.5g/t gold.
(See the Company's news release dated April 8, 2015).The Cuiu Cuiu
project contains 100,000oz of gold in the Indicated category (3.4Mt @
1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @
1.2g/t gold). (See the report entitled "Resource Estimate and
Technical Report for the Cuiu Cuiu Project, Tapajos Region, North
Central Brazil" dated April 19, 2011 and filed on Sedar on April 21,
2011, and the Company's news release dated March 8, 2011).
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
News release #2015-6
Contacts:
Magellan Minerals Ltd.
Alan Carter
President and CEO
604.676.5663 [email protected]
TRY Price at posting:
21.5¢ Sentiment: Buy Disclosure: Held
