The purchase of the Faro zinc-lead mine assets in the Yukon is complete, Anvil Range Mining reports.
The company, which is in the process of going public, acquired the Faro assets of former miner Curragh Inc. from receiver Peat Marwick Thorne. Anvil has completed the sale of 7.2 million shares through Pucetti Farrell Capital to a group of Canadian and international institutional investors, at $5.68 per share, for an aggregate $41.1 million.
A previously announced offering of flow-through shares, through ScotiaMcLeod and Wood Gundy, is expected to close by about Nov. 15. This initial public offering is expected to raise about $31 million.
The company is planning to bring the Grum deposit at Faro into production; stripping work is set to begin this month.
Regarding reclamation costs at Faro, Anvil and the federal government’s Department of Indian Affairs and Northern Development have agreed to the creation of a trust, capped at $100 million, which will be funded by a sliding-scale net smelter royalty based on zinc prices.
The company also has an agreement with the Ross River Dena Council providing for contracting, employment and other benefits for members of the aboriginal group.
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