Jordex Resources (VSE) has finalized an agreement with Compania Minera Tiwanacu of Bolivia to earn a 50% interest in the latter company’s base and precious metal properties in South America. The company has agreed to invest US$4 million in Tiwanacu for the reduction of debt and expansion of its two milling and mining complexes at Potosi and Poopo, Bolivia. At present, expansion plans are under way to increase annual production at those operations to 60,000 tons of lead-zinc-silver concentrate per year, up from the current 30,000 tons per year.
Jordex has also obtained a 2-year option to purchase the remaining 50% interest in Tiwanacu by paying US$2 million for the first 15% and US$8 million for the remaining 35% interest.
Part of the financing for the Tiwanacu purchase was done through a bridge loan from the Ampac Group, a resource investment firm in the U.S.
Jordex recently placed $1.75 million in convertible debentures with Ampac carrying an interest rate of 10%. Each debenture is convertible into units consisting of one share and one share purchase warrant. The share conversion prices range from $1.15 to $2.15 per share over a 5-year period.
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