Canadian-based Mandalay Resources has completed the sale of its Cerro Bayo gold mine in southern Chile to Equus Mining.
The deal was first confirmed in October, and includes mining properties, resources and mine infrastructure as well as a 1,500-tonne-per-day processing plant at the Region XI site.
Mandalay received 587,502,438 ordinary shares in the capital of Equus under the deal’s terms, and also will retain a 2.25% net smelter royalty on production once the mine has produced at least 50,000 ounces of gold equivalent.
Long-term, it will also remain responsible for 50% of approved site closure costs at Cerro Bayo.
Dominic Duffy, president and CEO of Mandalay, said Equus is well positioned to move Cerro Bayo forward.
The rest of Mandalay’s portfolio includes producing assets in Australia, specifically the Costerfield gold-antimony mine, and Sweden’s Björkdal gold mine. Source:Mandalay Resources