Zinc processor Nyrstar invests in three properties in three weeks

Zinc and lead producer Nyrstar has reanimated after a difficult year, adopting a bullish, expansionist faith in zinc and lead.

RENO, NV - 

Vancouver-based junior miner Gold Hawk Resources said it has entered into an agreement that will allow Belgium-based zinc and lead producer Nyrstar to acquire an 85% interest in the junior company's Peruvian operating subsidiary for US$15 million.

As part of the transaction, Nyrstar will assume Gold Hawk's guarantee in respect to its subsidiary Compania Minera San Juan's (Peru) (CMSJ) US$13 million senior debt facility payable in February 2010. Nyrstar has also agreed to loan up to US$20 million to CMSJ to fund re-start and expansion cost for the Coricancha Mine.

Following the all-cash offering, Gold Hawk will be debt-free, have US$15 million in cash and own a 15% interest in the Coricancha mine, which could be in production during the first half of next year. The $20 million Nyrstar loan to CMSJ is expected to be sufficient to finance the mine restart.

The transaction is expected to be completed in November 2009.

Coricancha is expected to annually produce 20,000 dry metric tonnes (dmt) of zinc concentrate, 15,000 dmt of lead concentrate, 45,000 ounces of gold and 2.4 million ounces of silver.

The CMSJ transaction is the second investment made by Nyrstar this week. The company acquired a 19.9% interest in Ironbank Gold's Citronen zinc-lead deposit in Northern Greenland.

Three weeks ago, Nyrstar also acquired the East-Tennessee Zinc Mine complex from Glencore Group for US$126 million. The complex includes three separate mines.

Disclaimer

MINEWEB is an interactive publication, with rolling deadlines through each day, commencing in the Sydney morning,  and concluding, 24 hours later,  in the Vancouver evening.  If you believe your side of an issue deserves inclusion, but has failed to meet one of our deadlines, you are invited to notify the Editor in Chief in Johannesburg, and we will include you in our editing and expanding on our stories. Email him at alechogg@gmail.com

Print story      Email story      Subscribe to free newsletter

Back

 

responses to this article

Name
Subject
Comment