PERTH (miningweekly.com) – Metals explorer Phillips River Mining has moved to acquire a number of coal and phosphate interests in South America from shareholder Kiwanda Mines and its partner Lara Exploration.
Under a heads of agreement, signed this week, Phillips River would acquire Lara Exploration’s 19.9% interest in central Colombian coal producer Carbhid SA.
The junior would also acquire a number of assets jointly held by Lara Exploration and Kiwanda Mines through their phosphate alliance and coal alliance, including an option to earn a 51% interest in the Escalones coal mining rights, an option of a 75% interest in the Pelaya coal property, and an option to acquire a 75% interest in the Bofox phosphate mining rights, in northern Chile.
Furthermore, Phillips would also seek to acquire a 75% interest in the Ki phosphate exploration right adjacent to the Bifox mining right.
In exchange for the coal assets, Phillips River would pay an amount determined by independent valuation, after deducting an initial A$450 000 payment to Lara Exploration. The payment would be satisfied through the issue of Phillips River shares, and would be split between Kiwanda and Lara Exploration, with the 75% majority of the shares going to Kiwanda, which already holds a 19.9% shareholding in Phillips River.
The amount payable for the phosphate assets would also be determined by independent valuation, and half of this amount would be paid on the closing of the transaction, with the remainder to be paid on achieving production and resource establishment milestones.
Phillips River had also agreed to reimburse Lara Exploration for the costs incurred in acquiring and maintaining these assets.