Cassiar Mining (TSE) has acquired Similco Mines, a wholly-owned subsidiary of Newmont Mines, and its principal asset in Canada, the Similkameen copper operation near Princeton, B.C.
The $10-million purchase price will be paid by Cassiar-owned Similco out of future cash flow, notes Cassiar. The mine produces 56 million lb copper, 15,000 oz gold, and 400,000 oz silver per year; annual sales are currently over $60 million which is almost identical to Cassiar’s.
The mine has proven reserves of 55 million tons grading 0.46% copper which is sufficient for a 7-year mine life. Possible reserves of 60 million tons could double mine life to about 15 years. “At current metal prices this acquisition is expected to be repaid rapidly and have a significant impact on Cassiar’s earnings,” says the company.
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