Toronto-listed Consolidated Nevada Goldfields (CNG) will merge with Grupo Real del Monte, a mining company based in Mexico City.
As a result, CNG will end up with double its current productive capacity and nearly 10 times its current reserve base, says James Maronick, vice-president of finance.
“The amalgamation would make Consolidated Nevada a truly North American company with activities in Canada, the U.S. and Mexico,” he says.
CNG will issue new shares and warrants to shareholders of Grupo Real del Monte so that each party ends up with a half interest in the new company. The deal is subject to regulatory and shareholder approval, as well as due diligence.
Grupo Real del Monte operates four mines in Mexico, the largest of which is the Pachuca silver mine, 60 miles northeast of Mexico City. The mine has been operating for more than 500 years, having produced 1.5 billion oz. silver and 6 million oz. gold.
“The productive capacity is in place, and there are clear needs for equipment and technology,” Maronick explains. “We hope to bring [the mine] up to North American standards.”
Situated on a 400,000-hectare property, the minesite features a 3,000-ton-per-day mill.
Grupo Real del Monte also operates the Magistral del Oro gold mine and the Baztan copper mine, among others.
CNG’s roster of gold mines includes the Nixon Fork in Alaska and the Aurora in Nevada.
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