WINDSOR, N.S. — Buchans Minerals Corp. said Monday it has an agreement with Minco pls that will see the Ireland-based, U.K-listed concern invest $9 million to explore Buchans assets.
Minco has also agreed to pay $1 million to acquire Buchans units in a private placement in the Nova Scotia-based exploration-stage miner.
Under terms of the deal, Minco can earn a 51 per cent interest in the company’s base metal properties in Newfoundland and Labrador by spending $8 million to advance Buchans’ Lundberg deposit to final feasibility over four years and to further explore the company’s extensive mineral properties in the Buchans camp.
Meanwhile, Minco will pay Buchans $1 million for an exclusive six-month option to evaluate the company’s Woodstock manganese property in New Brunswick with a view to potentially entering into a joint-venture agreement to develop the property.
Minco will also invest $1 million to acquire about 15.4 million units of the company in a private placement at 6.5 cents per unit. Each unit will consist of one Buchans common share and one-half of one common share purchase warrant. Each whole warrant will be exercisable for one common share at a price of 10 cents apiece for 24 months.
Buchans shares closed Friday at 5.5 cent apiece on the TSX Venture Exchange.
Minco is listed on the Alternative Investment Market of the London Stock Exchange.