Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
Metals Creek Resources’ (TSXV: MEK) stock was up over 11% Wednesday mid-day, after the explorer announced it has signed an option agreement with Newmont Goldcorp to earn a 100% interest in Goldcorp’s Dona Lake mine property in the Pickle Lake mining district in Northwestern Ontario.
The Dona Lake mine property is located in the Pickle Lake Greenstone Belt which is host to several historic mines including the Dona Lake mine, the Central Patricia mine and the Pickle Crow mine.
The agreement allows for Metals Creek to earn 100% of Goldcorp’s interest in the Property by issuing to Goldcorp a total of 7 million Metals Creek shares and funding C$4 million in exploration expenditures over 36 months.
After vesting, Newmont Goldcorp will have a one-time option to earn back 51% of the property by spending C$4 million on exploration over the following 24 months.
The property consists of 32 patented and leased mining claims totaling approximately 430 hectares and covers the past producing Dona Lake mine. The Dona Lake Mine, an underground operation from 1989 to 1994 produced 246,500 ounces of gold.
Wednesday afternoon IIROC issued a temporary trading halt after volume reached 1.39 million, over 15 times Metal Creek’s daily trading average of 90,000. The company has a C$3.1 million market capitlalization.
