Production Commences at San Rafael

Americas Silver Corp. has initiated production at its San Rafael mine as the sole source of mill feed for the company’s Cosalá Operations in Sinaloa, Mexico. Initially, the company is targeting a throughput of 1,500 metric tons per day (mt/d). The mine is currently producing more than 1,000 mt/d as it continues its ramp-up. There is a stockpile in excess of 25,000 mt of San Rafael ore and a further 50,000 mt of Nuestra Señora ore at the mill, if required.

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Rio Tinto, Sinosteel Extend Channar JV

Rio Tinto and China’s Sinosteel Corp. have agreed to extend their historic Channar Mining joint venture. This third extension of the joint venture, confirmed in Beijing by Rio Tinto Chief Executive J-S Jacques and Sinosteel Chairman Xu Siwei, will see an additional 10 million metric tons (mt) of iron ore delivered into the joint venture from Western Australia.

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New Gold Sells Peak Mines

New Gold has entered into a binding agreement with Aurelia Metals Ltd. to sell the Peak Mines, located in Cobar, New South Wales, Australia, for $58 million.

“Peak has generated significant value for New Gold and predecessor companies over its 25 years of operation,” said Hannes Portmann, president and CEO, New Gold. “Peak’s robust history of replacing and growing its mineral resources has been key to its successful contribution to New Gold’s portfolio of assets.”

The sale will offer Aurelia the opportunity to grow its asset base in the Cobar region, Portmann said. “Today’s transaction is another step to enhance New Gold's liquidity and will further enable the company to focus on its Americas-centric portfolio of operating mines and development projects,” he added.

Aurelia intends to fund the transaction through a combination of a A$45 million debt facility provided by the Investec Group and an equity placement in the order of A$70 million. Aurelia’s largest shareholder, Pacific Road Capital Management Pty Ltd., has committed to Aurelia to subscribe for up to A$35 million in the equity raising and increase their interest in Aurelia to 36.7% from 33.6%, subject to shareholder approval. Aurelia will pay at least a $3 million deposit, which will be retained by New Gold in certain circumstances if the transaction is not completed.

The deal is subject to customary closing conditions, including Aurelia shareholder approval of a portion of the equity financing and consent from the New South Wales minister responsible for the Mining Act 1992 for the transfer of control of certain exploration licenses. It is expected to close in the first quarter of 2018.

Macquarie Capital acted as financial advisor to New Gold and Corrs Chambers Westgarth acted as New Gold’s legal advisor.

 

LSC to Acquire Mina Teresa in Argentina

LSC Lithium Corp., together with its subsidiaries, has entered into a binding letter of intent to purchase all shares of Alqa Lithium S.A., the sole owner of the Mina Teresa project covering 2,595 hectares in the Salar de Salinas Grandes in Argentina’s Jujuy Province, for $2 million payable in three installments. Closing of the acquisition is expected to take place around December 15, but no later than the end of 2017.

Mina Teresa is located adjacent to LSC’s Cristina, San José and Mahoma leases. Following the transaction, LSC’s land package on the Salar de Salinas Grandes will total nearly 38,000 hectares and represent more than 50% of the salar surface.

LSC also recently announced it has obtained approval to commence its exploration program on the San José and Navidad concessions. These concessions cover a total area of 4,300 hectares and are part of a joint venture with Dajin Resources Corp. Now that LSC has access to the ground, an exploration program is currently being designed to investigate the presence of lithium-bearing brine and lithologies on the property. This includes the evaluation and the integration of historical data into the exploration target model. Thereafter, the program will potentially include geological mapping, surface sampling, a geophysical data acquisition phase, and a drilling phase to confirm the target generation results and potentially deliver a 43-101 Mineral Resource for the property.

LSC has amassed a large portfolio (300,000 hectares) of prospective lithium-rich salars located in the “lithium triangle,” an area at the intersection of Argentina, Bolivia, and Chile, where the world's most abundant lithium brine deposits are found.

 

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