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Tuesday, 25 September 2012
Marifil Mines strikes deal to sell Toruel project in Argentina
Marifil Mines (CVE:MFM) has struck a deal with Netco Silver (CVE:NEI) to sell 100 per cent of its Argentine Toruel copper project, the company said Monday.
Shares of Marifil rose 6.25 per cent to reach 8.5 cents. Netco's stock gained 8.33 per cent rising to 6.5 cents apiece on the TSX Venture Exchange.
The deal, which is slated to close by November 30, also includes exploration data relating to the Toruel property, which rests in the Rio Negro province of Argentina.
Both companies believe the transaction to be in the best interests of shareholders, they jointly said in a statement Monday.
Under the terms of the deal, Netco will issue 3.5 million purchase warrants to Marifil, which will grant Marifil the right to buy one common share of Netco for 10 cents for one year.
Marifil can buy a Netco share for 15 cents each after the first year, until two years from the closing date of the transaction, the company said.
The consideration will give Marifil a number of shares equal to a 19.9 per cent stake in Netco Silver at closing.
The deal will also see Vancouver, B.C.-based Marifil get a three per cent net smelter returns royalty.
Netco has also agreed to assume Marifil’s existing property payment obligations to the underlying owners of the Toruel property
The transaction is subject to a number of conditions, including Netco having at least $825,000 in funds, of which $375,000 will be used to purchase claims from an underlying owner, and $450,000 will be used for a drill program at Toruel. The deal is also reliant on regulatory approvals.
On March 3, 2011, Netco and Marifil struck an option agreement, under which Netco could earn a 70 per cent stake in the Toruel property.
The property covers 5,736 hectares and is located 25 kilometres southeast of the village of Los Menucos, Rio Negro.
Netco has finished prospecting and surface sampling on the acreage and reported assays from 162 surface samples.
Rock samples returned assays from 0.0 to 0.714 grams per tonne (g/t), while channel samples returned 0.0 to 0.379 g/t gold, 56.8 g/t silver and over one per cent lead over 0.95 metres.
Work also revealed new vein structures outside the known Toruel vein, where past drilling had hit 6.1 metres of 1,998 g/t silver and 5.34 per cent copper.
Marifil is a Canadian exploration company that focuses on Argentina. Through its joint venture opportunities, it has been able to develop a diverse portfolio of properties, including several with bonanza grade gold, silver, copper and indium values.
The company has a land position of 20 properties, totalling more than 400,000 hectares within nine provinces of Argentina.
In early May, the exploration-stage resource company hired Robert J. Rennie to aide with the proposed spin-out of its fertilizer-related assets, under a consulting services agreement.
Marifil’s flagship potash properties, K-2 to K-6, are located in the Neuquén Basin in Argentina, where the company said it has identified "extremely significant potash targets" on all five properties through a review of oil well drill logs.