Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Olympus Pacific Minerals TSX:OYM, ASX:OYM has formed a joint venture with Abra Mining & Industrial Corporation (AMIC) and other companies to develop the Capcapo gold project in the Philippines.
Olympus Pacific paid AMIC $300,000, and will pay an additional $400,000, after getting access to the property, to acquire a 60% interest in the property, located in the north of the country.
“This acquisition is an integral part of our strategy to become a multi-mine producer and complements our development stage Malaysian property in diversifying our company over three countries in Southeast Asia,” said Olympus Pacific CEO John Seton.
The other JV partners are Jabel Corporation, Kadabra Mining Corporation, and PhilEarth Mining Corporation. Jabel, which jointly owns the mining claims, will earn a royalty paid on either 3% of the gross production value from the mine or 6% of the annual profit from the JV, whichever is higher.
Olympus must also pay AMIC US$2 million plus 2 million Olympus shares, or common shares valued at $5 million, whichever is less, every time daily production rates are achieved or mineral reserves are defined.
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