In its quest to become the sole owner of the Pinos gold project, Candelaria Mining (TSXV:CAND) is issuing 7,075,472 common shares to the shareholders of Minera Apolo, a move that will allow the Canadian miner to acquire the 40% it still didn't have of the Mexican company's shares.
"I am pleased to announce that Candelaria will hold 100% of the Pinos gold project. The recently released PEA shows that Pinos is a great small-scale project with the ability to grow with exploration potential. Developing the property as outlined in the PEA will allow us to commence with a low-capex project which will generate cash flows to allow further expansion in operations and exploration organically," Curtis Turner, President and CEO of Candelaria Mining, said in a media statement.
Curtis also said that his company is currently seeking external financing to fund the development of the project.
Located in Zacatecas, Mexico's second largest gold producing state, Pinos consists of some 3,800 hectares of concessions which, according to Candelaria, host roughly 17 kilometres worth of veins containing gold and silver.
Measured Resource at the site has been calculated at 4,444 ounces of gold and 228,892 ounces of silver (85,847 tonnes grading 1.6 g/t gold and 82.9 g/t silver). Indicated Resource has been estimated in 20,586 ounces of gold and 267,745 of ounces of silver (175,697 tonnes grading 3.6 g/t gold and 47.4 g/t silver).
Now that the acquisition has been completed and the necessary permits are in place, Candelaria plans to build a 200 tpd mining operation with a path to ramp up to 400 tpd within two years of production.