Canamax ups stake in Bell Creek mine

Canamax Resources (TSE) has acquired the remaining 50% interest in the Bell Creek gold mine from Pamorex Minerals (TSE). The mine is located near Timmins, Ont. Canamax, which owns the other 50% stake, will pay Pamorex $16.5 million in cash and a net smelter royalty of 2.5% on several properties which surround the mine. Pamorex will also get a 1.5% royalty interest on another property in the area.

This year — the mine’s first full year of production — gold output is expected to total 25,000 oz. Based on the purchase price, Canamax is paying $1,056(US) per oz of gold production which is typical of similar gold acquisitions in North America.

For Pamorex, the deal will provide cash with which to explore and develop other mineral properties, the company says. This will be accomplished via joint ventures, acquisitions and the staking of properties.