TORONTO (miningweekly.com) – Exploration junior Colombian Mines on Tuesday said it had received regulatory approval for diversified miner Teck Resources to acquire an option to earn into 70% of its Colombian Yarumalito project.
Through making a private placement of C$1.5-million, at 53c a unit, the transaction represents a 70% premium over Colombian Mine’s share price.
Under the earn-in agreement, Teck is subject to fully funding a $10-million exploration programme, with the aim of completing enough drilling to calculate a Canadian National Instrument 43-101-compliant resource estimate.
"We are pleased to have regulatory and shareholder consent to this important transaction and we look forward to a strong working relationship with a significant partner like Teck at Yarumalito,” Colombian Mines CEO Robert Carrington said in a statement.
Yarumalito is one of 26 projects owned by Colombia Mines within the country and this single transaction was said to have a potential commercial value of more than $15.5-million to the company, or 160% of its current market capitalisation.