Colombia Milling Limited entered into a binding letter of intent to acquire Operadora Minera S.A.S from Mineros S.A. for $5.5 million.
January 10, 2020
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Colombia Milling Limited entered into a binding letter of intent to acquire Operadora Minera S.A.S from Mineros S.A. (BVC:MINEROS) for $5.5 million on January 10, 2020. The consideration price will be paid in cash. As part of the transaction, purchase of Operadora includes the shares and assets (including mineral properties and all mining assets), mining and environmental permits, exploration equipment, data, inventory, and administrative assets, including the El Bagre Operation and the Nechi Gold Project. The terms of the Agreement call for a two-phase purchase, starting at closing for the transfer of 60% of Operadora's shares, and the remaining 40% when the necessary permits are in place for the construction of Cordero, an additional mine portal for the El Bagre Operation. The Agreement has a 60 day period for the signing of a definitive agreement of the sale, at which time Para will take operational control of the operations. The transaction is subject to acceptance of the TSX Venture Exchange.
On March 25, 2020, Para Resources signed a definitive agreement to acquire Operadora Minera S.A.S from Mineros S.A. (BVC:MINEROS). Under the terms of the transaction, the consideration will be paid in two installments, the first installment will be $1 million to be paid within 30 days and the second installment of $4.5 million will be paid within 30 days following the permitting of the Cordero mine or written confirmation from the Colombian Ministry of Environment that the permit is not required for the construction and operation of the Cordero mine. As of May 6, 2020, the terms were amended in that the first payment of $1 million will be paid at closing and the remaining $4.5 million will be paid within 90 days after closing. Initial amount of $1 million will be financed by private placement of convertible debentures. Following acquisition, management team that has operated the mine since startup will remain and continue to manage the combined Colombian operations.
Mineros SA is a Colombia-based company primarily engaged in the exploration and exploitation of gold and other related precious metals, metallic and non-metallic minerals, and hydrocarbons. The Company has its major operational centres in the municipality of El Bagre, as well as in Zaragoza, Nechi and Bajo Cauca Antioqueno, which are located in the department of Antioquia, with a an annual average production of 120,000 gold ounces. As of December 31, 2011, the Company owned such subsidiaries as Proyecto Sabaletas SAS, Exploradora Minera SAS and Operadora Minera SAS, as well as it held a minor stake in Unipalma de los Llanos SA. In March 2013, the Company acquired 90% stake in Hemco SA, a Managua-based gold and silver mining company.