The First Quantum properties are about 11 km from the Horne 5 mining complicated in an space already impacted by historic mining actions.
Falco pays C$500,000 by Aug. 20 and problem to First Quantum frequent shares of Falco equal to the identical quantity, estimated to be 1.67 million shares. This constitutes a C$1 million possibility cost. The properties will then be transferred to Falco, which can assume historic and contingent environmental liabilities associated to the websites.
First Quantum will then repay the choice along with an extra quantity of C$3.5 million over the subsequent three years, giving First Quantum a 2% retained web smelter royalty on any manufacturing from a portion of the properties.
The Horne 5 undertaking has confirmed and possible reserves of 80.9 million tonnes grading 1.55 g/t gold, 14.14 g/t silver, 0.17% copper and 0.77% zinc, containing 3.6 million oz. gold or 6 million oz. gold equal.
The updated feasibility study outlined plans for an underground mine with paste fill and a mineral processing plant able to producing 220,300 oz. of gold yearly.
(This text first appeared within the Canadian Mining Journal)