CHILE - Toronto's MCK MINING and PACIFIC RIM MINING have come to terms on the sale of the Andacollo gold mine to MCK Mining. The deal involves payments of US$5 million by the end of March 2008, MCK shares, and work agreements.
The mine is an 18,000-tonnes/day heap leach that began operation in late 1995 and closed in December 2000 during a period of low gold prices. The mine has been under a closure plan and a creditors' agreement since 2001. However the leach pads, tertiary crushing plant, stacking equipment, gold recovery plant and other facilities are intact and can be restarted with minimal capital investment. The mine profitably produced 13,300 oz of gold in 2003 as part of the residual leach program.
For more information, call John Purkis, MCK president and CEO, at 604-643-1736 or senior VP Stephen Case at 416-363-1613.