WINDSOR, Nova Scotia – Buchans Minerals Corp. and Minco plc have entered into a binding agreement to combine their businesses to create a base metals and industrial minerals explorer with projects in eastern Canada. Minco had previously been granted an option to earn a 51% interest in Buchans’ base metal properties in central Newfoundland.
Under terms of the arrangement, Minco will issue approximately 124.64 million new Minco shares in exchange for Buchans shares. Buchans shareholders will hold 26.3% of Minco. The offer implies a 34.6% premium to the closing share price of Buchans Minerals on the TSX Venture Exchange on April 26, 2013.
Yesterday, Buchans and Minco filed a mineral resource estimate for the Lundberg zinc-lead-copper deposit near Buchans, NL. Including both the Lundberg and Engine House zones, the deposit contains 23.44 million indicated tonnes grading 1.41% Zn, 0.60% Pb, 0.35% Cu plus silver, gold and barium sulphate. The inferred portion is 4.31 million tonnes at 1.29% Zn, 0.54% Pb and 0.27% Cu. The project is advancing towards pre-feasibility.
Additional information about the Lundberg deposit and the Buchans/Minco business combination is posted at BuchansMinerals.com.