Titan agrees to buy $6.5m Peru plant

Gold-focused Titan Minerals has signed an agreement to purchase a processing plant in northern Peru in a cash and scrip deal for approximately $6.5 million.

Under the agreement, Titan will pay $US2 million ($2.5 million) and issue 131 million shares to the vendors, Peruvian companies Kairos Capital and M&S Transport.

At today’s share price of 3.1 cents, the combined cash and scrip exchange is worth about $6.5 million.

The agreement comes after Titan recently announced plans to acquire West Perth-based Andina Resources, which owns a number of assets in close proximity to Titan in Peru.

The Mirador plant is located in Chimbote, 450 kilometres north of Lima near Titan’s San Santiago project.

The plant is a hybrid conventional style processing facility, with a capacity of 150 tonnes per day and a 50t/day carbon in pulp gold circuit to treat gold oxide ore.

It is currently undergoing an expansion to double its capacity.

One of the conditions of the agreement is that Titan muct raise a minimum of $US3 million, with a number of approvals required also.

Execuitve chairman Matthew Carr said the purchase would be a significant step for the company.

“Upon completion of the acquisition, along with the takeover of Andina Resources, Titan will have secured two fully operational assets in both the southern and northern parts of Peru,” he said

“Completion of the acquisition and the takeover of Andina Resources would assist Titan to further enhance its presence as a significant producer of high-quality product across multiple locations in Peru and as the owner of the Torrecillas gold mine and multiple highly prospective mineral claims.

“With this fully integrated process, Titan is seeking to undertake positive cash flow operations from which it can build for future growth.”

Shares in Titan were flat at 3.1 cents each at 3pm AEDT.