Vancouver A newly restructured deal will allow Pacific Minerals (PMZ-V) to retain at least 50% of its flagship Chinese projects.
Ivanhoe Mines (IVN-T) has elected to reduce its maximum earn in rights for the 217 and Dangong gold projects, as well as the JBS platinum-palladium project to 50% from the previous 80%. The company has also agreed to transfer to Pacific Minerals a 50% of its interest in the Shuteen exploration licence in southern Mongolia. The 93-sq. km property lies 100 km east of Kharmagtai. Ivanhoe acquired the right to earn an 80% interest in Shuteen in early 2002 by spending US$1.5 million the end of 2004. So far, Ivanhoe has spent US$1.4 million on the project. In return, Pacific Minerals will issue Ivanhoe 2.5 million shares.
Ivanhoe also has agreed to purchase an additional 2.5 million units of Pacific Minerals at a price of $1.75 per unit. Each unit holds one share and one warrant, which is exercisable at $2.20 for a 2-year period. Pacific Minerals also has arranged a private placement to sell another three million units at a price of $1.60 each. A unit hold one share and half a warrant. A full warrant is exercisable at $2.20 per share for two years.
The Robert Friedland led junior retains the right to earn up to 80% in any new projects acquired by Pacific Minerals in China, excluding properties in the Anhui and Liaoning provinces. The two companies also agreed not to compete for any new mineral properties in the Inner Mongolia region and in Liaoning province.
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