Canadian junior Pershimco Resources (PRO-V) plans to take a majority stake in Minera Cerro Quema, a Panamanian company that owns the Cerro Quema gold mining project, 190 km southwest of Panama City.
Pershimco has the option to acquire up to 75% of the Panamanian company for an investment of up to US$18.5 million. Once that investment has been completed, Pershimco has the option to obtain an additional 10% of the company.
Under the letter of intent, Pershimco must also repay Minera Cerro Quema’s debts of US$1.8 million to Central Sun Mining, US$2.05 million to Carena Equities, and US$1.19 million to Bellhaven Copper & Gold.
News of the investment sent Pershimco’s shares up 25% or 3¢ apiece to 15¢ per share in mid-day trading in Toronto.
The gold project is on the Azuero peninsula and according to Minera Cerro Quema, has non-compliant National Instrument 43-101 proven and probable reserves of 10.5 million tons at an average grade of 1.10 grams gold per tonne.
“With the drilling we intend to execute in the upcoming weeks, in addition to over 16,000 meters of drilling already performed to date, this project will provide an excellent database for the disclosure of a NI 43-101 technical report,” Alain Bureau, Pershimco’s president and chief executive, announced in a prepared statement.
Outside of Panama, Pershimco has a 100% interest in the Courville gold project in Val-d’Or’s Malartic mining camp in Quebec as well as a 50% interest in the La Bamba and San Miguel silver properties in Mexico’s Cusi silver mining camp. It also holds a 100% interest in the polymetallic (copper-silver-gold-zinc) Skarn Magistral project in Chihuaha state.
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