Recently, NSW tin and base metal developer YTC Resources (ASX: YTC) announced a deal to acquire the Hera Project in central NSW from CBH Resources (ASX: CBH).
Hera is an undeveloped Hera gold-base metal deposit. There is potential for YTC to develop a gold and base metal mine at and truck the ore to CBH's nearby Endeaour Mine for processing - lowering capital expenditure costs.
The deal struck with CBH was a payment of a A$1m non-refundable deposit; a further payment of A$11m within 90 days, and a 5% gold royalty on gravity gold doré production from the Hera deposit, capped at 250,000 oz Au.
From the 22nd June 2009, YTC had 90 days from 22 June in which to obtain $11 million in financing.
YTC has confirmed today it is in discussions with a number of parties regarding a capital raising and "is pleased with the strong indicative responses of support."
YTC's major shareholder is the worlds largest tin producer, the Yunnan Tin Group of China with 33% of YTC, as well as marketing partner.
At the time, Chief Executive Officer Rimas Kairaitis said the Hera deal was a rare opportunity for YTC to capitalise on a near-term, high grade production asset with exposure to gold. The Project also contains a natural base metal hedge in addition to exciting exploration upside.
Interestingly, the non-ferrouse metals expertise of Yunnan would also seem to come into play to assist YTC for the gold and base metals component of the acquisition.
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