Titan divests of Peruvian projects
Monday, August 24th, 2020
The Peruvian assets were acquired as part of Titan’s acquisition of Canada’s Core Gold.
The company on Monday unveiled that it has agreed to dispose of its right to acquire the Coriorcco and Las Antas mineral claims to TSX-V listed Western Pacific Resources Corporation for $1.65-million in cash and $1.29-million worth of shares in Western Pacific.
In the event that Western Pacific exercise the option to acquire the Coriorcco property, the company will grant Titan a 1% net smelter royalty over the property. The company would also pay Titan a stipend ranging between $1-million and $2-million in either cash or shares, on the declaration of a measured and indicated resource of more than 500 000 oz of gold.
Furthermore, Titan has also struck a divestment agreement over its Vista gold plant, for $3.5-million in cash.
The plant has a nameplate capacity of 150 t/d and started operations in late May last year, following the grant of a final operator’s permit. The plant is currently permitted for up to 350 t/d operational throughput, and is both permitted and designed to increase its capacity to 350 t/d with minimal capital outlay and readily upgradable when warranted by increasing supply.
The sale of the Vista gold plant is conditional on the receipt of regulatory approvals.
Titan MD Laurie Marsland told shareholders on Monday that the divestment of the Peruvian assets would allow the company to focus on the development of its flagship Dynasty gold project, and the Copper Duke project, in Ecuador.
“Titan’s primary focus remains firmly on developing the Dynasty gold project and the Copper Duke project. This divestment will support that objective while retaining exposure to both the Coriorcco and Las Antas projects.
“The funds received will contribute towards completion of the high impact drilling campaign at the Dunasty gold project, the airborne geophysical surveys for high resolution magnetic coverage and significant surface sampling programmes, all of which support conversion of the substantial resource to a Joint Ore Reserves Committee code compliant resource in late 2020.”