Minera Alamos Inc (CVE:MAI) (OTCMKTS:MAIFF) said shareholders have now approved the final phase of the C$14 million financing deal with Osisko Gold Royalties Ltd, announced in December, which will allow it to build the Santana gold mine in Mexico.
As reported last year, Osisko will buy 30 million shares of Minera at C$0.20 each for C$6 million. Osisko will also acquire a 3% net smelter royalty (NSR) of the Santana project for C$5 million in cash and Minera will have the option to draw down from Osisko as much as C$3 million more.
Minera Alamos said on Wednesday that it and Osisko were working to complete final documentation to execute the royalty and optional royalty by no later than the end of the first quarter this year.
"Upon completion of the relevant documentation, closing of the second half of the transaction with Osisko Gold Royalties will result in the receipt by Minera of C$5 million in cash," said Minera in a statement.
"In addition, the company will acquire access to an additional C$3 million finance facility that can be accessed if required. Following the completion of this second phase of financing, the company is now in receipt of all the funds currently budgeted for the construction at the Santana gold project.
Transitioning to gold producer
As Minera graduates from gold developer to gold producer in 2020 we are grateful for the ongoing support of Osisko and all our shareholders," said Doug Ramshaw, president.
The firm expects it will take six to eight months to build Santana. First gold production is expected sometime later in the fourth quarter of this year.
The firm said it will be at Booth #2423A within the Investors Exchange on March 1 at this year's PDAC convention to be held at the Metro Toronto Convention Centre, while the Red Cloud 2020 Pre-PDAC Mining Showcase will be held on February 28 at the Omni King Edward Hotel.
Minera will presenting at 11.40 am and will be meeting with the investment community throughout the day, it said.
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