Vancouver – The Denton-Rawhide joint venture hopes to generate millions in tipping fees through a new deal that could see its open pit near Farallon, Nevada used as a municipal waste dump.
The joint venture between Vancouver-based Pacific Rim Mining (PMU-T) and Kennecott Rawhide Mining struck the deal with Reno-based Nevada Resource Recovery Company which has paid US$500,000 up front and must pay another US$1 million when the deal is closed.
Pacific Rim believes the tipping fees could be worth US$103.6 million over the next 40 years or so. Nevada Resource Recovery can buy out future tipping fees based on a net present value estimated at US$29 million for Pacific Rim’s share of the fees.
It’s early stages yet, as the property purchase and sale agreement is subject to some important provisions. Most importantly approval by the State of Nevada to use the site as a waste dump is needed. In addition, the Rawhide joint venture needs to buy up several parcels of federal land within the proposed landfill site and Nevada Resource Recovery needs to secure municipal waste contracts.
The Rawhide JV wants to continue its heap leach gold operation and will be responsible for any impacts or liabilities associated with mining on the property. By the same token, all obligations and liabilities related to impacts of the landfill will be borne by Nevada Resource Recovery.
Pacific Rim wants to use any future cash flows from the landfill project to finance its El Dorado project in El Salvador.
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