Taking a turn away from its usual stomping grounds in Spain and North Africa, Rio Narcea Gold Mines (RNG-T, RNO-X) is buying 31.8 million shares and 11.5 million warrants of Peru-focused base metal explorer Chariot Resources (CHD-T, CHDSF-O) from Amerigo Resources (ARG-T, ARGOF-O).
This represents about 13.7% of the outstanding Chariot shares, and the shares and warrants together constitute 14.7% of the shares and warrants outstanding of Chariot.
Rio Narcea is paying 65 per share and 30 per warrant for a total of $24.1 million. Each warrant entitles the holder to buy another share of Chariot for 35 until Dec. 22, 2006.
This purchase is in addition to the 6.3 million Chariot shares and 1.8 million warrants bought by Rio Narcea on the market in the last few months, which brings Rio Narcea’s total shareholding in Chariot to 16.4% of shares and 17.4% of the shares and warrants outstanding of Chariot.
Rio Narcea says it has bought these securities for investment purposes.
“Rio Narcea is impressed with the potential of Chariot and its Marcona copper project, which is located in Southern Peru on the same Iron Oxide Copper Gold (IOCG) belt which hosts Mantos Blancos and Candelaria. Given our experience in developing and bringing mines into production, we look forward to contributing to the development of the Marcona copper project in whatever constructive way we can,” said Rio Narcea chairman and CEO Chris von Christierson in a statement.
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