Buenaventura taking up all of Poracota

Minas Buenaventura (BVN-N) has agreed to take over the 25% interest in the Poracota gold project in Arequipa department, Peru, held by Teck Cominco (TCK-T, TCK-N).

Buenaventura is paying US$2.25 million for the interest, which was a shareholding in operating company Minas Poracota. Poracota is at development stage, and a resource of 1.7 million tonnes grading 10.6 grams gold per tonne has been outlined. Buenaventura picked up an option on 75% of Poracota in early 2006.

Buenaventura also announced its board had approved a going-private acquisition of Inversiones Minera del Sur, the operating company that holds the Antapite and Ishihuinca mines, also in Arequipa department. Minority shareholders had already accepted an offer of US$17.3 million for the 22% interest Buenaventura did not hold.

Buenaventura must still get shareholder approval for the merger, at a meeting scheduled for Nov. 2.

Antapite produced 53,000 oz. gold in the first half of the year, at a cash cost of US$214 per oz. Ishihuinca, in Arequipa department, is a 200-tonne-per-day gold and copper producer.