A proposed asset swap will give Pan American Minerals (TSE) a 60% interest in the Van Stone zinc-lead mine in Washington state, and Equinox Resources a 100% interest in the J&L gold property in British Columbia.
Equinox, now a subsidiary of Hecla Mining (NYSE), has a half interest in J&L, with Pan American holding the balance.
In addition to the 60% stake in the company that owns Van Stone, Pan American will receive notes payable totaling $6.8 million. Pan American would therefore be entitled to all cash flow from Van Stone, up to about US$6 million.
Low zinc prices forced the closure of the Van Stone in January, 1993, leaving about 2.3 million tons grading 1.04% lead and 5.63% zinc.
The probable geological resource in the Main zone at J&L was last estimated at 1.9 million tons grading 4.4% zinc, 2% lead, 0.22 oz. gold and 2.2 oz. silver per ton.
The Main zone contains a further possible geological resource of 2.1 million tons grading 3.5% zinc, 3.3% lead, 0.21 oz. gold and 2.5 oz. silver and remains open at depth and along strike.
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