Canadian Mining Journal

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VMS EXPLORATION: NovaGold sheds non-core assets

ALASKA MANTRA MINING of Vancouver has struck a deal with London, U.K.-based RIO TINTO and Vancouver's NOVAGOLD RE...


ALASKA MANTRA MINING of Vancouver has struck a deal with London, U.K.-based RIO TINTO and Vancouver’s NOVAGOLD RESOURCES to acquire the Ambler volcanic massive sulphide deposit and several other prospects in Alaska. The agreement fulfills NovaGold’s desire to shed its non-core assets.

The deal is worth $49 million. Mantra agreed to pay $29 million in cash and shares to Rio Tinto for its 49% share of the Ambler property. A further $20 million in Mantra shares will be paid to NovaGold for its 51% stake in Ambler plus 100% interests in five other base and precious metals properties. Manta has also agreed to reimburse NovaGold for expenditures made at Ambler between June 1, 2008, and the closing date.

When the deal closes, NovaGold, with a share of approximately 11%, will be the largest single shareholder of Mantra.

The Ambler project includes the Arctic VMS deposit, 290 km southeast of TECK COMINCO’s Red Dog zinc mine. A 43-101-complicant report on the deposit mentions resources of 15.8 million tonnes averaging 4.14% Cu, 6.03% Zn and 0.94% Pb in the indicated category plus 11.9 million tonnes at 3.56% Cu, 4.99% Zn and 0.80% Pb in the inferred category.

Details of the transaction may be read at www.NovaGold.net or www.MantraMining.com.


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