Exploration and development firm Palladon Ventures has agreed to buy its partner Luxor Capital Partners' 50% share of the company that owns the Iron Mountain iron-ore project, in southwest Utah, in the US.
Palladon will pay Luxor $40-million in cash when the transaction closes, and a further $25-million 12 months after that.
The company plans to raise about C$59,5-million in an equity financing, in which Luxor has also agreed to invest up to $8-million.
“We will now control 100% of the project and will be fully focused on achieving our production targets and generating cash flows under our five-year contract with China Kingdom International,” said president and CEO Donald Foot.
Palladon expects to start shipping run-of-mine ore to China in the third quarter of this year.
Source: Mining Weekly
No comments:
Post a Comment