In a share swap, Utah-based Royal Minerals (NASDAQ) plans to acquire the outstanding shares of privately owned Montana Reserves.
Existing shareholders of Royal Minerals will end up owning about 18% of the company after the acquisition.
Montana Reserves holds a 5% net proceeds royalty on the Montanore underground copper-silver project in Montana and can convert this to a 45% working interest by paying owner Noranda (TSE) US$28 million before June 30. Montanore, a 20-dipping, stratabound deposit, contains a geologic reserve of 145 million tons grading 0.78% copper and 1.9 oz. silver per ton. Permitting has been completed and Noranda estimates a feasibility study can be carried out for US$15 million, including underground development, drilling and engineering.
A ball park estimate of the capital cost for a 17,500-ton-per-day mine is US$250 million.
Details on how Royal plans to raise funds for the exercise price and feasibility study have not been released.
Centurion Mines (NASDAQ) owns about 80% of Royal Mineral’s outstanding shares.
Be the first to comment on "Royal Minerals lands Montanore"