Zijin Mining to take 9.9% stake in Montage Gold
As part of the deal, the Lundin Family Trust also agreed increase its stake in the company from 17.7% to 19.9%.
Victory Nickel Inc. announced Wednesday improved economics for its 100%-owned Minago nickel project in Manitoba. The improvement arises from a 24% increase in pit constrained measured and indicated resource announced earlier this year.
The increased resource has extended the mine life from the Nose Deposit open pit from approximately seven years to approximately nine years.
The base case internal rate of return (IRR) has increased to 22.9% from the original estimate of 17.7% and the net present value (NPV) at a 6% discount rate has risen by $317.9 million, or 79%, to $720.5 million, compared with the feasibility study (FS) results announced by news release on December 14, 2009. Undiscounted cash flow has increased to greater than $1.5 billion (all figures in $Cdn, unless otherwise indicated).
“The process of optimizing the technical and financial aspects of the project continue and this improvement is more evidence of that work. We remain confident that additional economic enhancements will be realized from the efforts that are ongoing,” said Rene Galipeau, Vice-Chairman and CEO. “While we continue to optimize the FS, we are also moving forward with financing initiatives, permitting, sourcing equipment and conducting additional metallurgical studies to improve the quality and marketability of the concentrates being produced.”
Mr. Galipeau added: “This valuation relative to Victory Nickel’s market cap is further indication that the markets are out of synch with asset values, a situation that must correct itself. The next milestone to moving the project forward is the receipt of the Environmental Act Licence which we expect later this month as advised by the Manitoba government and announced at the shareholders annual meeting in June.”
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