One of the first junior mining companies to take a serious look at opportunities in Nicaragua plans to expand a gold mine in the Central American country.
Triton Mining, soon to be listed on the Toronto Stock Exchange, will spend US$8.5 million to increase production at the Limon mine to about 35,000 oz. from 24,000 oz. per year.
To finance the project, Triton will raise $13.75 million from a public offering, proceeds of which will also be used to acquire, explore and develop other properties in Central and South America.
The Limon property includes an exploitation concession of about 120 sq. km. Current production is divided equally between underground and open-pit reserves. The expansion program will last one year and is aimed at increasing daily throughput to 1,000 from 450 tons.
Triton has been active in Nicaragua for the past three years and has several geologically prospective concessions. The company’s land package includes the former-producing India mine and several districts explored by previous owners. “We are quite positive about Nicaragua,” said Triton President Arnaldo Ismay. “Since the democratic government took over, three years ago, we have seen the introduction of free-market policies in a lot of industry sectors, including mining. They are following the examples of Mexico and Chile, in the areas of new mining laws and foreign investment laws.”
Triton also has an option to acquire the Topacio project in Nicaragua and a joint venture involving nine concessions in Argentina.
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