Para Resources (TSXV: PBR) announced that its wholly-owned subsidiary Colombia Milling entered into a binding letter of intent with Mineros to acquire 100% of the shares of Operadora Mineras for $5.5 million in cash.
In a press release, Para said that the purchase of Operadora includes the shares and assets, mining and environmental permits, exploration equipment, data, inventory, and administrative assets, including the El Bagre operation and the Nechí gold project.
The purchase creates a significant contiguous concession package in Colombia, including Para’s Zara concessions and El Limón projects
The El Bagre operation includes the La Ye and Los Mangos operating underground gold mines and the Cordero gold project located in the municipality of Zaragoza, in Colombia’s central northwestern Antioquia department.
The Nechí gold project includes, on the other hand, the El Catorce, Santa Elena, and Santa Maria gold exploration projects located in the Bajo Cauca Antioqueño.
“The terms of the agreement call for a two-phase purchase, starting at closing for the transfer of 60% of Operadora’s shares, and the remaining 40% when the necessary permits are in place for the construction of Cordero, an additional mine portal for the El Bagre operation,” Para’s media brief states. “The agreement has a 60 day period for the signing of a definitive agreement of the sale, at which time Para will take operational control of the operations.”