Resolute Mining says it will pay Mali $160 million in tax dispute
The company’s shares in Sydney were suspended on Thursday, after tumbling 40% since news of the detention of CEO Terry Holohan.
Miner and commodities trader Glencore (LON: GLEN) is providing Falco Resources (TSX-V: FPC) with a $10-million bridge financing that will help the Canadian junior move forward with its flagship Horne 5 VMS deposit in Quebec.
The companies also entered into life-of-mine copper and zinc off-take agreements, which will see concentrate from the mine being smelted at Glencore’s facility. The plant is adjacent to Falco’s project and is the only copper smelter in Canada.
The companies also signed copper and zinc off-take agreements, with concentrate to be smelted at Glencore’s facility, the only one of its kind in Canada
“While there remains significant work to be done and challenges to be addressed, Glencore Canada is committed to working with all stakeholders towards creating the winning conditions necessary for the further development of the Horne 5 Project and of the fully-integrated copper industry in Quebec,” Glencore global head of copper metallurgical operations, Marc Bédard, said in the statement.
Shares in Falco Resources shot up after the news and were trading 15.4% higher at 45 Canadian cents by 2pm ET. The miner has a market capitalization of Cdn$101.77 million ($77.4m).
The Horne 5 VMS deposit sits immediately below a namesake copper-gold mine that was operated by Noranda Inc. from 1926 to 1976.
Once it reaches commercial production, Horne 5 is expected to run for at least 15 years, producing 219,000 ounces of gold annually at a rate of 16,000 tonnes of ore per day.
Initial capital costs tally to just over $802 million, most of which needs to be raised.
Falco counts among its shareholders well-known names, including Osisko Gold Royalties, which holds an 18.3% stake, and the Government of Québec, with a 5% interest.
