A due diligence study will be carried out by Princeton Mining (TSE) as the first step of an agreement-in-principle to acquire up to 100% of a private company holding copper, gold and silver properties in the state of Sonora, Mexico.
The properties are held by a Mexican company owned 49% by Chutine Resources (VSE) and 51% by Mexican interests. Chutine has the right to acquire the 51% interest from the Mexican shareholders.
Under the terms of the agreement with Chutine, Princeton may negotiate to buy the 51% interest from the Mexican shareholders and carry out a due diligence inquiry over the next month.
If these efforts are successful, Princeton will immediately start a detailed feasibility study to be completed by early next year. If the study confirms the financial projections of Chutine’s preliminary study, Princeton will then procure the remaining 49% interest by acquiring the shares of, or amalgamating with, Chutine.
The previous study for the Luz del Cobre deposit was based on an open pit, copper-oxide heap leach operation using solvent extraction-electrowinning (SX-EW) circuits to produce about 18 million lb. of cathode copper per year. The deposit is reported to host minable reserves of 11.2 million tons at a diluted grade of 0.87% copper and a strip ratio of less than 1-to-1, based on a cutoff grade of 0.22% copper.
These calculations are based on results from 22 core holes, 24 reverse circulation holes, sampling in 10,000 metres of underground drifts and crosscuts, and extensive surface sampling and trenching.
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