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Chalice wraps up Ontario acquisition

Chalice wraps up Ontario acquisition

Photo by Bloomberg

5th February 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Gold miner Chalice Gold Mines has completed its merger with Canada’s Coventry Resources, acquiring full control of the Cameron gold project, in Ontario.

In September last year, ASX- and TSX-listed Chalice announced the proposed merger as the first step in acquiring quality assets while preserving cash.

The company said on Wednesday that it had started distributing about 46-million shares directly to Coventry shareholders, on a pro rata basis.

Coventry’s Cameron gold deposit has measured and indicated resources of 567 000 oz at 2.45 g/t and an inferred resource of 829 000 oz at 2.11 g/t. A preliminary economic assessment determined a mine could produce 61 000 oz/y at an average cash cost of $852/oz over ten years. It has an estimated initial development and capital expenditure of $110-million.

Edited by Creamer Media Reporter

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