Caldas Gold agrees extension to Marmato mining contract
Caldas Gold Corp, the Canadian junior mining company, has reached an agreement with Colombia's Agencia Nacional de Mineria (ANM), on the economic conditions for a 30-year extenstion to its Marmato mining contract 014-89M, which is set to expire in October.
The key conditions associated with the approval of the extension include:
- An increase in the royalty rate paid to the ANM on gold production, from 6 to 7 percent. The ANM royalty on silver revenue will remain at 8 percent.
- An ongoing commitment to fund annual social investment based on a rate of US$25 per ounce produced, adjusted annually based on changes in the US CPI Index, and subject to an annual minimum of US$300,000, which is also indexed annually based on the US CPI Index; and
- A contract premium of US$6 million to be paid over a four-year period, indexed annually based on the US CPI Index.
The ANM has indicated that its process related to the technical information and finalization of the legal documents for the extension will be completed by mid-January.
“We are very pleased with the cooperative manner in which our mining title extension request is being handled. It is clear that all parties understand the importance of this project to the nation, the Department of Caldas, the local community at Marmato and to our investors,” said Serafino Iacono, Chairman and CEO of Caldas Gold, commenting on the extension update.
“We look forward to a successful conclusion of the extension process later this month, enabling us to bring the Aris Gold transaction to a close and to move ahead more aggressively with the MDZ expansion by accessing funds available under the Wheaton Precious Metals’ stream and being held in escrow from our Gold Notes financing.”
Caldas Gold is currently advancing a major expansion and modernisation of the underground mining operations at its Marmato Project in the department of Caldas, Colombia.
The company also owns 100 precent of the Juby Project, an advanced exploration-stage gold project located within the Shining Tree area in the southern part of the Abitibi greenstone belt about 100 kilometres south-southeast of the Timmins gold camp.
Vale invests $150mn to extend life of Manitoba operations
Vale has announced a $150mn CAD investment to extend current mining activities in Thompson, Manitoba by 10 years while aggressive exploration drilling of known orebodies holds the promise of mining well past 2040.
Global energy transition is boosting the market for nickel
The Thompson Mine Expansion is a two-phase project. The announcement represents Phase 1 and includes critical infrastructure such as new ventilation raises and fans, increased backfill capacity and additional power distribution. The changes are forecast to improve current production by 30%.
“This is the largest single investment we have made in our Thompson operations in the past two decades,” said Mark Travers, Executive Vice-President for Base Metals with Vale. “It is significant news for our employees, for the Thompson community and for the Province of Manitoba.
“The global movement to electric vehicles, renewable energies and carbon reduction has shone a welcome spotlight on nickel – positioning the metal we mine as a key contributor to a greener future and boosting world demand. We are proud that Thompson can be part of that future and part of the low carbon solution.”
Vale continues drilling program at Manitoba
Coupled with today’s announcement, Vale is continuing an extensive drilling program to further define known orebodies and search for new mineralization.
“This $150mn investment is just one part of our ambitious Thompson turnaround story. It is an indicator of our confidence in a long future for the Thompson operations,” added Dino Otranto, Chief Operating Officer for Vale’s North Atlantic Base Metals operations.
“Active collaboration between our design team, technical services, USW Local 6166, and our entire Thompson workforce has delivered a safe, efficient and fit-for-purpose plan that will enable us to extract the Thompson nickel resources for many years to come.”
The Thompson orebody was first discovered in 1956 by Vale (then known as Inco) following the adoption of new exploration technology and the largest exploration program to-date in the company’s history. Mining of the Thompson orebody began in 1961.
“We see the lighting of a path forward to a sustainable and prosperous future for Vale Base Metals in Manitoba,” said Gary Annett, General Manager of Vale’s Manitoba Operations.