Andover Mining (AOX.V) has announced an agreement wherein the Enirgi Group can earn a 51% interest in the entire Burgin complex in Utah, which is owned by Andover’s 83.5% owned Chief Consolidated Mining.
Under the proposed terms of the JV agreement, Enirgi can obtain 51% of the Burgin complex by funding the PFS and FS, and arranging the project financing to develop and construct the mine and milling facilities.
We believe this is a very positive deal for Andover Mining and their shareholders. The company will be free carried till production and keeps 49% of the project in hands. Burgin is an exciting project, and we believe the NI43 compliant resource estimate of 18Moz silver and 750M lbs ZnPb are just the tip of the underlying iceberg.
Disclosure: The author holds a long position Andover Mining Corp. Please see our disclaimer for current positions.
