Laconia gives thumbs up for acquisition of Rasuhuilca project in Peru

THE BOURSE WHISPERER: Perth based exploration company Laconia Resources has completed its due diligence regarding the Rasuhuilca project in Peru and has reached the decision to proceed with its acquisition.

 

Projects location map. Source: Company announcement

 

The next hurdle for the company to clear will be to obtain shareholder approval for the deal, which it will seek at a shareholders meeting planned for mid to late April 2012.

“The Rasuhuilca project is a high-grade gold and silver project, with outstanding near-term development potential and major exploration upside and is located approximately 500 kilometres south east of the capital Lima, in the southern part of the country,” Laconia Resources explained in its ASX announcement.

Laconia is acquiring the Rasuhuilca project from Perth-based exploration company Gold Mines of Peru.

Consideration for the acquisition consists of:

42.055 million ordinary Laconia shares;

14.5 million performance shares;

$120,000 paid over six months to a third party;

$500,000 from production revenue only if production revenue is reached within five years; and

Dr Saliba Sassine, the Chairman of Gold Mines of Peru, will join the Laconia Board once shareholder approval for the acquisition has been achieved.

As part of the transaction, Laconia will also acquire Gold Mines of Peru’s other Peruvian projects, the Motil and Porcuchia gold-silver tailings projects.