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Additional information
Additional Information
Market: AIM
Sector: Gold Mining
Epic: MCR
News: Latest news
Web Site: Mercator Gold
Other Articles: 09-07-201030-06-201021-06-2010 
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Thursday July 29, 09:30Specialist Energy Group Lays Out a Compelling Blueprint for Growth

After a difficult start to life as a stock market listed company, the company now stands at the threshold of a much brighter future. Legacy issues have been dealt with and the turnaround programme initiated by CEO Ewan Lloyd-Baker is gaining traction.

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Wednesday July 28, 11:30Silver Lake Resources boosts high grade gold resource by 70% to 2.5m ounces

Silver Lake Resources has added over 1 million ounces of gold to its resource inventory during the year after mining 66,700 ounces and expects further encouraging results at its  Mount Monger and Murchison projects.

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Thursday July 15, 02:10Henan Yuguang Lead & Gold investment in Kimberley Metals receives all clear from FIRB

Kimberley Metals (ASX: KBL) has reported that on 12 July the Australian Government Foreign Investment Review Board (FIRB) had no objections to Henan Yuguang Lead & Gold Co. Ltd's [...]

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Mercator Gold

Mercator Gold

Mercator Gold plc is a diversified mining investment company with quality assets and the capability to undertake significant, value accretive transactions. Mercator is dedicated to creating value for its shareholders through a process of finding value, adding value and realising value. In order to achieve this, Mercator is able to access a pipeline of projects sourced from its global network and utilises the expertise of its directors and advisers.

Mercator holds an exclusive option over the Copper Flat project, a porphyry copper-molybdenum-gold-silver deposit in the Las Animas mining district of New Mexico, United States and a former producing mine. It is believed that the Copper Flat project, which has significant infrastructure in place, could be brought back into production within a relatively short timeframe for a relatively low capital outlay.

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Tuesday, March 16, 2010

Mercator Gold to sell exclusive Copper Flat option to Canada's THEMAC Resources in all-share deal

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Mercator Gold (AIM: MCR; OTC: MTGDY) has entered into a binding heads of agreement with THEMAC Resources Group (TSX-V: MAC.H) to sell its entire interest in New Mexico Copper Company Inc (NMCC), whose main asset is an exclusive option over the Copper Flat copper-gold-molybdenum-silver project in New Mexico.

Mercator will receive 10.5 million fully paid shares in THEMAC and 10.5 five-year warrants exercisable at C$0.28 per share. THEMAC will also fund all expenditure by Mercator or NMCC over the Copper Flat project from the date of the agreement until the completion of the transaction and place 5.5 million shares at C$0.15 per share with attached one-year warrants exercisable at C$0.28 per share. A second placing of shares to raise C$5 million with one year warrants at a price sufficient to raise C$10 million will be undertaken prior to the completion of the transaction.

The closing price of shares in THEMAC Resources on 12 March 2010 was C$0.24 with 12.6 million shares in issue.

“The Copper Flat project is an exceptionally promising asset in the present copper market, and vending NMCC and its exclusive option over the project into a dedicated North American listed company with highly capable and experienced management will ensure that the project becomes well placed to obtain the funding required for the timely recommencement of production,” said managing Director of Mercator Gold Patrick Harford.

Mercator noted that it is no longer responsible for the purchase and development costs of Copper Flat, while retaining substantial interest in the project. The company said its interest in THEMAC could generate “extraordinary” returns.

Copper Flat is a former producing mine with substantial infrastructure still in place. The Copper Flat deposit has historic reserves of 50.21 million short tons at an average grade of 0.45% Cu (copper), 0.1244 g/t Au (gold), 2.053 g/t Ag (silver) and 0.015% Mo (molybdenum), based on a cut-off grade of 0.23% Cu.

On the basis of current historic reserves and assuming metal prices of US$3/lb copper, US$10/lb molybdenum, US$900/oz gold and US$13/oz silver, the Copper Flat project is estimated to have an NPV (net present value) of US$348 million and an IRR (internal rate of return) of 45%, assuming initial capital costs of US$115 million for the recommencement of production and a discount rate of 8%. The current price of copper is US$3.33/lb.

In a separate statement today, Mercator announced it placed a further 2 million new ordinary shares at a price of 2.5 pence per share to raise £50,000 before expenses, only a day after saying it has raised £422,500 through a placing of 16.9 million new shares at 2.5p each. Both placings were carried out by Old Park Lane Capital.

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