The second batch of 40,300 tonnes of wet ore (39,500 dry tonnes) from
About 23,500 oz. gold have been produced from development material and ore mined since the end of April, following final permitting. The shipment weighed 5,000 tonnes more than planned and had an average grade of 20.5 grams gold per tonne.
In late 2003, Rio Narcea agreed to buy 4-5 batches of high-grade Nalunaq ore averaging 31 grams gold per tonne. The price has not been disclosed. This year, Rio expects to produce 120,000 oz. gold under the Nalunaq milling agreement.
The deal provides an alternative source of feed for the El Valle plant as Rio Narcea shifts from open-pit to underground mining at the El Valle and Carles operations. The next shipment is due in late November.
Greenland-based junior NunaMinerals owns the balance of Nalunaq; Nuna’s principal owner is the government of Greenland.
Meanwhile, Crew’s recently issued 5-year senior unsecured bond loan has been fully subscribed to the tune of $29 million. The loan, which bears a fixed interest rate of 9.5%, will be drawn down on Oct. 27, 2004, and repaid in five years.
Crew can redeem the loan after three years at 103% of the price, or a year later at 101.5% of the price. The company reserves the right to decrease the loan to around $23 million; a final decision will be made prior to the initial payment.
Rio recently inked a deal under which a group of underwriters led by BMO Nesbitt Burns and including Haywood Securities, Sprott Securities and Orion Securities will buy 21 million Rio Narcea units for sale to the public at $3.10 apiece. A unit includes a share plus half a warrant; a full warrant is good for an additional share at $5 until Sept. 11, 2008. The underwriters have an option to buy up to another 3.25 million units up to a day before closing, which is expected to be Oct. 25.
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