Alberta-listed Consolidated Bonanza Metals will acquire all of the shares of Mincor Mozambique, which holds a 20-year mining licence in Mozambique.
The licence contains the Monarch gold mine, which covers 2,700 acres in Manica province and produces 6,000 oz. per year at US$150 per oz. Annual production is targeted to increase to 13,800 oz. following a $1-million expansion plan, financing for which is already in place.
Mincor will make a private placement in Bonanza consisting of 2 million shares at 25 cents each for a total of $500,000. Bonanza will also issue 10.7 million treasury shares, together with warrants to buy an additional 2 million Bonanza shares at 80 cents each in order to acquire Mincor’s entire share holding in Mincor Mozambique.
When these transactions are completed, Mincor will hold about 75% of Bonanza’s issued capital.
The transactions are subject to an independant evaluation of the Monarch mine, to determine an asset value of not less than $6 million.
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