Industry: Energy Industry Region: Europe Deal Price: $1 million Deal method: Equity investment
The project mine ceased production and entered maintenance in March 2019, and will be able to start production again within 6 months after the proposed completion of partial encryption drilling and reset scheduling (budget $10 million). The reason for this sale is that due to the lack of working capital, P, the bondholder of the mine company and the company's 19.9% 2nd largest shareholder, is conducting a mandatory sale of the mine company's assets.
The project is located at the largest deposit in Northern Europe, with good infrastructure, open pit production of 75,000 ounces per year, 600,000 ounces of retained resources, a planned production schedule of 6.5 years and full production costs of $950/oz. The project has a very good, promising and profitable resource upside, uses no ore screening method, the pit is not closed at depth and has good signs of surrounding mineralization.
According to the 2016 edition of the JORC report: its Measured and Indicated Resource of 24.3 million tonnes grading 1.13 g/t (approximately 885,000 ounces) with an additional inferred resource of 4.4 million tonnes grading 1.64 g/t (approximately 231,000 ounces).
Based on the 2017 NI 43-101 report: its proven and controlled resource of 3.8 million tonnes grading 1.24 g/t (approximately 151,000 ounces of gold) with an additional inferred resource of 9.0 million tonnes grading 1.53 g/t (approximately 445,000 ounces of gold).
According to the 2018 PEA Preliminary Economic Justification Report, the pre-tax NPV of the project is approximately US$92 million (yellow price of US$1,300 per ounce and a discount rate of 5%).
The Seller is currently seeking interested parties to submit a non-binding tender offer, based on a desk-based due diligence exercise, by May 24, 2019.
The selected interested party will be invited to conduct the next round of more detailed due diligence work and site visits.
Finland is ranked as one of the top mining regions in the world by FraserInstitute, a leading country risk assessment organization, with stable investments and promising prospects.
If you are interested in this project, please contact us