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() shares are trading higher after the company said it has finalized the terms of the C$7 million private placement for which it will issue 41 million common shares at C$0.17 per share in an offer led by TD Securities. The deal is expected to close on May 14 2015.
Pershimco was boosted by confirmation that () (NYSE:AEM) will take a 20 percent stake in the Panama-focused gold producer.
Apart from Agnico Eagle The Sentient Group has also purchased the equivalent of 20 percent of Pershimco while Roger Bureau director and Pierre Monet Vice-President Finance and Chief Financial Officer will acquire 1.2 million shares so that they each hold approximately 20% of the Company following the offering.
Cerro Quema is Pershimco's flagship project and is located on the Azuero Peninsula in southwestern Panama. The company will use the proceeds for engineering development and construction of the Cerro Quema project and the continuation of exploration expenditures in Panama.
Pershimco’s Cerro Quema is an open pit project with current proven and probable reserves of 488000 ounces of contained gold; the mine should reach production by 2016 with a 10000 tonne-per-day heap leach facility with an estimated mine life of 5.3 years.
Pershimco's pre-feasibility study suggested the project to have an after-tax net present value of $110 million and an IRR of 33.7 percent supported by recovery rates of 86 percent and all in sustaining cash costs of C$631 per ounce.
The project with a gold oxide production scenario and a copper-gold porphyry target is also proven to have exploration upside with resource expansion potential in more than 12 oxide targets identified along a 17km trend.
A June 2014 technical report by Golder Associates suggested that Cerro Quema could present additional gold mineralization along a trend hosting the La Pava Quemita-Quema and La Mesita deposits.
In late September Pershimco acquired the last net smelter royalty held over the asset from a Panamanian company leaving the project with no other royalties except for the standard government royalties for all mining operations in the country.
Agnico a Toronto based gold miner has nine mines in Canada Finland and Mexico and it expects significant growth this year due to lower fuel costs and weaker local currencies anticipated in Canada Mexico and Finland.
Agnico has acquired several junior companies over the past year. Its Q4 results last February benefited from the acquisition of the Malartic mine in Quebec.
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