Empire Mining Corp. (EPC.V) announced a JV agreement with First Quantum Minerals Ltd. today whereby First Quantum can earn a 51% interest in the Bursa copper project by paying $1.5M in cash and incurring $8.5M in exploration expenditures over 3 years. First Quantum will also subscribe for $1.5M in a new private placement at C$0.10/share.
We are very happy with this development, as First Quantum will pay the first $8.5M in exploration expenditures. Empire’s cash position will increase to around $3M after closing the deal and placement, and is in a good shape for near futures.
You can read the entire press release here.
Disclosure: The author holds a long position in Empire Mining Corp. Please see our disclaimer for current positions.
re “Empire’s cash position will increase to around $3M after closing the deal and placement”, err that sounds good but don’t we have to subtract the GCT loan and breakfee, ie 2m + 250k? Or are you adding in the optional extra 15m placement?
Well actually, 1.5m went to pay Alacer Gold for the props so that might not be quite right, but closer I think.
Thus leaving .750k to 1.25m spare, on top of whatever mighty be left in kitty.
Is that enough to start the chromite, or are they gong exploring instead? Have you asked?
Busy days for the cousins Giustra (see PMI / MNAP).
Dave, we indeed didn’t subtract the Alacer payment + the CGT breakup fee. We will only be able to calculate their ‘real’ cash position after they closed both the First Quantum and the 2nd tranche PP, and we’ll write an update after those placements have been closed.
$1M obviously isn’t enough to re-start the chromite operations. We are waiting for a PR confirming the licenses have been reinstated, and we’ll see how things evolve in Albania from here on. At this point we aren’t sure we’ll see production before 2014.