Xstrata Unit Completes C$50 Million Acquisition Of Canadian Zinc Prospects
04 Oktober 2011 - 8:38AM
Dow Jones News
Xstrata PLC (XTA.LN), a diversified mining company announced
Tuesday unit Xstrata Zinc, has closed its acquisition of the
Hackett River and Wishbone exploration properties, located in the
Western Kitikmeot region of Nunavut, Canada, from Sabina Gold &
Silver Corp.(SBB.T) for a cash consideration of C$50 million.
MAIN FACTS:
-Under the terms of the agreement, Xstrata will commit a further
C$50 million towards exploration on the properties within four
years of the transaction's completion and Xstrata will pay Sabina a
royalty on silver produced from the properties.
-The Hackett River property comprises nine mineral leases
totaling 12,250 hectares.
-The Wishbone area comprises 132 mineral claims covering 107,227
hectares.
-Exploration drilling in Hackett River has confirmed an NI
43-101 compliant resource of circa 60 million tons of ore
containing zinc, silver, copper, lead and gold, with 5.2 million
tons of zinc equivalent, housed within four proximal near surface
deposits amenable to open pit mining.
-Both properties contain significant additional exploration
potential.
-Shares closed Monday at 790.9 pence
-By Zechariah Hemans, Dow Jones Newswires; 44-20-7842-9411;
zechariah.hemans@dowjones.com