Para Resources Inc (CVE:PBR) (OTCMKTS:PRSRF) is poised to acquire Operadora Mineras S.A.S. (Operadora) for US$5.5 million in cash, which adds to its asset portfolio in Colombia and includes an operating gold mine and plant.
Its subsidiary Colombia Milling Ltd has struck a binding letter of intent with Mineros S.A. to acquire 100% of the shares of Operadora.
The latter includes the El Bagre operation, which includes the La Ye and Los Mangos operating underground gold mines, and the Cordero gold project located in the municipality of Zaragoza, Antioquia.
Purchase consists of two phases
"The purchase of Operadora is a strategic purchase for Para Resources with the operating gold project of El Bagre," said Geoff Hampson, the chief executive at Para.
"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 deal also includes the Nechí gold project, which includes the El Catorce, Santa Elena, and Santa Maria gold exploration projects in Bajo Cauca Antioqueño in Antioquia.
The purchase consists of two-phases, starting at closing with the transfer of 60% of Operadora's shares.
The remaining 40% will be due when the necessary permits are in place for the construction of Cordero, an additional mine portal for the El Bagre Operation.
The deal has a 60 day period for the signing of a definitive agreement of the sale, at which time Para will take operational control.
Resource junior Para has acquired fully permitted mines and facilities with adjacent properties that have either been past producers or where there are an abundance of small artisanal miners, dramatically reducing exploration risk.
Para is unique in that insiders have invested over US$30 million of their own capital and own around 70% of the equity.
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