NexGen Mining has entered into a non-binding letter of intent to acquire exploration and development company Electrum Copper for an undisclosed sum.
Electrum owns Candela and Don Indio Projects, which are situated in Mexico’s Coahuila State.
The Don Indio Project consists of 38km 17,372ha, while the Candela Project includes 400ha.
With a distance of 38km from the town of Cuatro Cienegas, the Don Indio Project has sediment-hosted copper-silver mineralization analogous to the Kupferschiefer deposits of central Europe.
Earlier work enabled to detect multiple showings expanding along 35kms and grading up to 35% copper and 1,650g per tonne silver.
With a distance of 45km east from the city of Monclova, the Candela Project includes a copper-gold-molybdenum-rich breccia pipe, which is expected to hold larger-scale skarn and porphyry-style mineralisation.
Based on the earlier exploration and development, the property is expected to hold significant potential for near-term production. The company aims to carry out further exploration at the property to establish a significant resource base.
NexGen Mining president and CEO Marc Andrews said: “We believe that Electrum brings high quality projects, a strong leadership team with great vision, and project and geographic diversification that will enhance our portfolio of projects and that we believe will enhance our ability to implement our business plan.”
Upon the completion of the deal, the company’s board of directors will include five members, of which four will be designated by Electrum and one will be designated by NexGen.
NexGen will select a president and CEO satisfactory to Electrum, while Marc Andrews will be appointed as business development vice president and Kim Neal as controller.
