Montreal-listed MSV Resources has added to its holdings near Chibougamau, Que., by acquiring the mining concessions and surface equipment of three properties of Meston Resources.
The properties — Cedar Bay, Henderson I and Henderson II — are contiguous to MSV’s mines in the area. The acquisitions will enable the company to start a drilling program, to be followed by the extension of certain underground drifts at various levels of its Copper Range and Portage mines. The company bought the two copper-gold operations and a 3,000-ton-per-day concentrator earlier this year.
Assuming regulators approve the new acquisition, Meston will receive a 3% net smelter return, payable after MSV recovers the initial startup costs for producing ore at Cedar Bay. Production must exceed four million tons before the royalty kicks in. No royalty applies to the Henderson properties. MSV has also negotiated an offering (again subject to regulatory approval) with a pair of underwriting firms. It consists of 4.1 million special warrants at $2.20 each. Each warrant will entitle the holder to acquire one common share of MSV, without additional contribution. The underwriters will have an option to buy an additional 410,000 shares at $2.20 each. In other news, MSV recently graduated from the ranks of junior companies listed on the Montreal Exchange. It is now listed in the exchange’s General Section.
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