Procoloro shifts gears, picks up new properties

Procoloro Resources (PCH-M) has decided to shift its focus from gold exploration to chromite and ferrochrome development.

At the company’s recent annual meeting, shareholders gave the corporate transformation the thumbs-up and approved changing the company’s name to Allican Resources. The company is now operating under that name, though is trading under the same ticker symbol.

In keeping with its new business plan, the company recently signed a deal with Coleraine Mining Resources (CRI-M) and Cancor Mines (KCR-M) to acquire their five chromium properties in Quebec’s Appalachia region.

In order to acquire the Coleraine, Reed-Belanger, Garthby, Lac Montjoie and Sterret properties, Procoloro will issue 500,000 shares and 250,000 share purchase warrants to each company. In addition, Procoloro will pay each company $5 per tonne of concentrate mined from the acquired properties.

Procoloro will also pay $1.5 million to each of Coleraine and Cancor once financing is secured or when the original agreement expires, whichever occurs first.

The Coleraine and Reed-Belanger properties, near the town of Thetford Mines, are at the advanced stage. Proven and probable reserves at Coleraine stand at 1.2 million tonnes grading 4% chromite, whereas those at Reed-Belanger are pegged at 6.2 million tonnes of 7.19% chromite.

A prefeasibility study currently being conducted at those properties envisages annual production of 48,000 tonnes of concentrate grading 48% chromite. Procoloro also intends to complete a $1.2-million private placement to pay for a feasibility study. That study, which will include 5,000 metres of drilling, is expected to be released before the end of the year.

Regardless of its new corporate strategy, Procoloro plans to retain its Colombian gold properties.