Titan sells Zaruma mine to focus on Dynasty gold project
Link copied to
Titan Minerals has sold the Zaruma mine and Portovelo process plant in Ecuador to Pelorus Minerals for a tidy US$15 million plus a 2% net smelter return royalty on future copper production.
The sale will allow Titan to resolve the balance sheet issues it inherited after it acquired Core Gold Inc. in 2020.
Titan Minerals (ASX:TTM) also walks away with a strong cash position with an initial US$3.5 million payment due now and another US$2 million due on the 31st of August.
The transaction also includes a US$2.5 million payment due on the 1st of December, plus a further US$2.5 million on the 1st of March 2022 and another US$2.5 million on the 1st of June 2022.
The company will now focus its full attention on the development of its flagship multi million Dynasty gold project, as well as exploration at the Copper Duke project and the gold project in Ecuador.
“Given the improvement in our financial position as a result of this asset sale, we expect to continue drilling and deliver an updated JORC resource at Dynasty following completion of the Cerro Verde drill program,” Titan managing director Laurie Marsland said.
“We wish Pelorus every success for its IPO planned for later this year and for re-establishing operations at the Zaruma mine, which Titan shareholders will retain exposure to through the 2% net smelter return royalty on future copper production.”
The company is continuing its drilling program at the Cerro Verde prospect at Dynasty, with the aim of delivering a JORC resource during Q4 2020.
This article was developed in collaboration with Titan Minerals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.