The buy-back of the 3% royalty and 50% back-in option on the San Francisco gold property from Mexican firm Compania Fresnillo is complete, Geomaque Explorations (TSE) reports.
The mine property, now wholly owned by Geomaque, is expected to come into production during the third quarter of this year. The planned rate of production is 30,000 oz. gold per year, increasing to 50,000 by 1996. San Francisco, Geomaque’s primary long-term asset, hosts reserves of 7.1 million tonnes grading 1.46 grams per tonne (334,000 oz. gold). Four separate open pits are planned at the mine, although three-quarters of reserves are in the main pit.
The transaction with Compania Fresnillo was financed in part through a private placement of 3.5 million common shares of Geomaque and 2.5 million warrants to Goldcorp (TSE). The subsequent exercise of the warrants by Goldcorp added $2.75 million to Geomaque’s treasury.
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