Updated: 7 hours ago
January 10, 2020, Vancouver, B.C. -- Para Resources Inc. (the “Company” or “Para”) is pleased to announce that Colombia Milling Ltd. (“CML”) a wholly owned subsidiary of the Company has entered into a binding letter of intent (the “Agreement”) with Mineros, S.A. (“Mineros”) to acquire 100% of the shares of Operadora Mineras S.A.S. (“Operadora”) for US$5.5 million in cash.
Photo - El Bagre Plant (El Bagre, Antioquia, Colombia)
The 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 El Bagre Operation includes the La Ye and Los Mangos operating underground gold mines and the Cordero gold project located in the municipality of Zaragoza, Antioquia, Colombia. The Nechí Gold Project includes the El Catorce, Santa Elena, and Santa Maria gold exploration projects located in Bajo Cauca Antioqueño in Antioquia.
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.
Geoff Hampson, Para’s CEO, stated, “The purchase of Operadora is a strategic purchase for Para Resources with the operating gold project of El Bagre. The purchase creates a significant contiguous concession package in Colombia, including our Zara Concessions and El Limon projects. In addition to an operating gold mine and plant, the purchase will incorporate a veteran team of operators, engineers, and geologists, and exploration equipment that creates an important center of gravity for the exploration and development of all our assets in Colombia.”
The Company will, in due course, provide an additional update with technical information on the project and transaction.
The acquisition of Operadora is subject to the acceptance of the TSX Venture Exchange.
A copy of this news release can also be found on our SEDAR profile.