Minera Alamos Approves C$14 Million to Build Santana Gold Mine, Mexico
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Minera Alamos Inc. said shareholders have now approved the final phase of the C$14 million financing deal with Osisko Gold Royalties Ltd, announced in December, which will allow it to build the Santana gold mine in Mexico.
As reported last year, Osisko will buy 30 million shares of Minera at C$0.20 each for C$6 million. Osisko will also acquire a 3 percent net smelter royalty (NSR) of the Santana project for C$5 million in cash and Minera will have the option to draw down from Osisko as much as C$3 million more.
Minera Alamos said on Wednesday that it and Osisko were working to complete final documentation to execute the royalty and optional royalty by no later than the end of the first quarter this year.
“Upon completion of the relevant documentation, closing of the second half of the transaction with Osisko Gold Royalties will result in the receipt by Minera of C$5 million in cash,” said Minera in a statement.
“In addition, the company will acquire access to an additional C$3 million finance facility that can be accessed if required. Following the completion of this second phase of financing, the company is now in receipt of all the funds currently budgeted for the construction at the Santana gold project.
TRANSITIONING TO GOLD PRODUCER
As Minera graduates from gold developer to gold producer in 2020 we are grateful for the ongoing support of Osisko and all our shareholders,” said Doug Ramshaw, president.
The firm expects it will take six to eight months to build Santana. First gold production is expected sometime later in the fourth quarter of this year.
Source: Proactive Investors
About Minera Alamos
Minera Alamos is gold development company poised to join the ranks of gold producers in 2020. The Company has a portfolio of high-quality Mexican assets, including the 100 percent-owned Santana open-pit, heap-leach development project in Sonora currently under construction, which is expected to have its first gold production in late 2020.
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