Vancouver-based Ariel Resources (TSE) intends to become Costa Rica’s largest producer of the yellow metal, at an annual rate of 50,000 oz.
The announcement follows the acquisition of Greenstone Resources’ (TSE) El Recio gold mine for 250,000 Ariel shares and a net profit interest (NPI) from future production from the mine.
The NPI initially will be set at 10% until Greenstone recovers its original investment. Thereafter, it will increase to 20% until Greenstone recovers an additional amount equivalent to its original investment. The NPI will then increase to 30% for the succeeding 5-year period.
El Recio contains an estimated 120,000 oz., and only a small portion of the extensive vein system has been explored. The mine is expected to re-open shortly and should be in production by the end of this year.
As a result of the acquisition, Ariel’s gold reserves have jumped to 508,447 oz. from just over 388,000 oz. Further increases are expected once results from recent drilling are taken into account.
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