Nyrstar to acquire Peruvian Zinc mine for USD 15 million
Friday, 02 Oct 2009
Bloomberg reported that Nyrstar NV agreed to acquire a Peruvian mine for USD 15 million, the latest deal in its strategy to secure raw material supplies.
Belgium based Nyrstar said in a statement that the zinc producer will pay Gold Hawk Resources Inc a Canadian mining exploration company in cash for 85% of the Coricancha mine, Balen. Gold Hawk will hold 15% of the mine which has a plant capable of producing 600 tonnes of ore a day.
Nyrstar, formed in a 2007 merger of the smelting assets of mining company Zinifex Ltd and metals recycler Umicore SA said in June it planned to expand into mining to secure raw material supplies. The company said September 28th it agreed to buy a 19.9% stake in Australian mining company Ironbark Gold Ltd for about EUR 3.5 million.
Nyrstar is planning to recommence operations at Coricancha which were suspended in May last year and produce 20,000 DMT a year of zinc concentrate, 15,000 DMT of lead concentrate and 45,000 ounces of gold. Concentrate is a form of raw material shipped to smelters.
Nyrstar said the mine hasn’t been expanded due to limited access to capital.
