29/10/2019 - 11:21

Eagle Mountain to acquire Arizona mine

29/10/2019 - 11:21

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Eagle Mountain Mining has announced plans to add to its tenements in Arizona, with a proposal to acquire 80 per cent of the Oracle Ridge copper mine.

Eagle Mountain to acquire Arizona mine
Charlie Bass says he the acquisition will complement the company's Silver Mountain project in Arizona.

Eagle Mountain Mining has announced plans to add to its tenements in Arizona, with a proposal to acquire 80 per cent of the Oracle Ridge copper mine.

It will pay an upfront fee of $US500,000 (approximately $A730,000) to mine receiver Vincere Resource Holdings, with the remaining $US6.4 million ($A9.35 million) to be paid in increments over 10 years.

A 20 per cent interest in Eagle Mountain’s Arizona subsidiary will also be granted to Vincere.

Today’s announcement comes a day after Eagle Mountain said its major shareholder and managing director, Charlie Bass, would lend it $US1 million.

This comes after its cash balance fell to just $A1.05 million at the end of September.

Eagle Mountain said the Oracle Ridge mine comprised an existing 18-kilometre underground mine, currently on care and maintenance, and was underpinned by 11.7 million tonnes of 1.57 per cent copper.

Oracle Ridge had previously been in operation from 1991 to 1995 and was purchased by Vancouver-based Oracle Ridge Mining Group (formerly Gold Hawk) in 2010, which had invested $26 million into technical studies, permitting and exploration drilling.

The project went into receivership in 2014.

Mr Bass said the company had completed due diligence on the Oracle Ridge tenements and believed the project could be a long-term, flagship operation.

“It is at an advanced stage copper and silver opportunity that perfectly complements our early stage, but highly prospective Silver Mountain project,” he said.

“Once we formally complete the acquisition, we will focus on exploration aimed at expanding the resource and some complementary early development studies.”

Eagle Mountain also recently announced it has completed phase-one drilling at the Silver Mountain project in Arizona.

“The company is now compiling and reviewing the data to determine the next steps,” Mr Bass said.

Eagle Mountain recently announced the appointment of mining engineer Tim Mason as its new chief executive officer, with effect from January 15.

“We have an established strategy in place that we believe will deliver long-term value to our shareholder base, and Tim brings the right combination of skills and experience to lead Eagle Mountain forward,” Mr Bass said.

“(Tim) will be driving the force behind advancing Oracle Ridge.”

Shares in Eagle Mountain Mining were down 7.5 per cent to trade at 0.18 cents per share, as at 1:40 AEDT.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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