Canadian Mining Journal

News

GOLD: Klondex to purchase Hollister mine, Esmeralda mill from Waterton



NEVADA – A subsidiary of Vancouver-based Klondex Mines has offered to purchase the Hollister gold mine and Esmeralda mill from Waterton Nevada Splitter LLC for a cash price of US$80 million.

The sale also includes an office in Winnemucca, NV, a core shed and corporate house, a lab in Lovelock, NV, the fleet of underground mining equipment, and certain other land interests and related assets.

To raise the money for the purchase, Klondex will sell 20 million subscription receipts at a price of C$5 each for gross proceeds of C$100 million.  The underwriters immediately offered to buy 22.9 million receipts, for gross proceeds of C$114.5 million. They also have the right to an over-allotment that could raise an additional $15 million.

Hollister, once considered one of the world’s highest grade gold deposits, lies at the intersection of the Carlin Trend and the Northern Nevada Rift. Waterton bought the mine and Esmeralda mill in  November 2013, put the operations on care and maintenance, and began re-exploring the Hollister property. The Hollister mine  received the environmental okay in 2014, but apparently it never reached commercial production.

Klondex operates the Midas and Fire Creek gold mines in Nevada. Visit www.KlondexMines.com for details of those operations.