BAKU, Azerbaijan, October 29
By Tamilla Mammadova – Trend:
Candelaria Mining Corp. has entered into a definitive agreement to acquire 100 percent of GMC Investments LTD (GMC), a wholly-owned subsidiary of Empire, which holds a 50 percent interest in the Bolnisi Gold and Copper Project in Georgia, Trend reports via Georgian media.
As consideration for the purchase of GMC, Candelaria has agreed to pay a total of 2 million CAD via the issuance of 4 million shares (at a deemed price of $0.50 per share) to Empire.
Upon approval of a reserves report on the Kvemo Bolnisi East project by the State Reserves Committee in Georgia (“Milestone 1”), an additional payment of $1 million ("Milestone 1 Price") to be satisfied via the issue of Candelaria common shares based on a previous 10-day average closing price.
The purchase is subject to a right-of-first-refusal (“ROFR”) in favour of Empire’s Georgian joint venture partner, Caucasian Mining Group LTD (“CMG”), which must be exercised within 20 business days from Empire submitting an offer. Closing of the acquisition of GMC is also subject to stock exchange approval.
GMC is the owner of a 50 percent interest in JSC Georgian Copper and Gold (“GCG”), a private Georgian company, which in turn holds the rights to mining projects under a 30-year mining concession in Georgia.
The Bolnisi gold and copper project is located in Georgia and situated within a highly underexplored part of the prolific Tethyan Belt, a well-known geological belt and host to many high-grade gold, copper and polymetallic deposits and producing mines.
Candelaria Mining is a Canadian-based gold development and exploration company with a portfolio of highly prospective projects in Mexico, one of the world’s best mining jurisdictions. Candelaria currently owns 100 percent of Caballo Blanco Project and the Pinos Gold Project.
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