RE:RE:mexican assets...to heliostarsatuple wrote: They're not selling those assets, they're giving them away almost for free.
- Strategic Acquisition of former Argonaut Gold Assets in Mexico - transforms Heliostar into a gold producer with a robust development portfolio
- Expanded Asset Base- adds two producing mines, the San Agustin Mine and the La Colorada Mine, and two advanced development projects to Heliostar's portfolio
- Increased Resource Base - Heliostar's measured and indicated resources grow to 3.5 million ounces of gold in addition to the Cerro del Gallo historical resource. Acquisition cost of measured and indicated resources is less than US$1.80 per ounce of gold
- Improves Ana Paula Economics - eliminates up to US$20 million in contingent milestone payments on the Company's flagship Ana Paula Project
- Immediate Production and Cash Flow- financial benefits from ongoing operations immediately accrue to Heliostar's account until closing, less US$5 million in operating cash flow to FCGI prior to closing
Heliostar CEO, Charles Funk, stated "This acquisition is transformative for Heliostar. The Company transitions from single asset developer to a multi-asset producer. The addition of the two producing gold mines provides cash flow to bring new production online. In addition, this transaction eliminates up to US$20 million in contingent payments on the Ana Paula project, freeing that capital for its development, which remains the Company's focus. Further it cancels up to US$150 million in conditional option payments on San Antonio. All in exchange for a total acquisition price of US$5 million. Perhaps of most value is the addition of a strong management team in Mexico that expands our capability to deliver on Heliostar's growth goals"