Xiana pays Glencore $25 million for Chilean operation

Minera Altos de Punitaqui. Photo by Choripan Kenobi, Wikimapia.

Vancouver-based Xiana Mining (TSXV: XIA), formerly Dorato Resources, paid $25 million and a 1.5% net smelter royalty to acquire Glencore’s (LON:GLEN) Minera Altos De Punitaqui in Chile.

Minera Altos De Punitaqui (MAP) is a copper-gold producing company that currently holds three operating mines, additional exploration licenses, a concentrator, and associated infrastructure. All these elements are contained within the Punitaqui Mine, a property located north of Santiago and south of Ovalle in the Coquimbo region.

MAP, which was originally acquired by Glencore in 2010 as a brownfield project, currently produces 3,600 tonnes per day of copper and silver concentrates.

“We are delighted to be announcing the closing of the MAP Acquisition and concurrent financing today. MAP is an excellent cornerstone asset for the Xiana portfolio and we look forward to executing our optimisation plans for the asset, building upon the asset’s potential and delivering long-term shareholder value,” said Carlos Ballon, Xiana’s Chairman & CEO, in a media statement.

At the same time the Chilean mine was acquired, Xiana announced the completion of a placement for gross proceeds of C$1.923 million and of its first draw in the amount of $2.85 million under its $7 million principal amount secured convertible loan agreement with Bluequest Sourcing AG.

The proceeds from both transactions were utilised to complete the MAP acquisition and finalise other pending transactions.