Friday, 28th December 2007 (1960 views)

Miramonte Mining has announced that it has agreed to purchase Nicaragua Gold.

Lary Williams, chief executive officer of Zurich-based Miramonte Mining, commented: "The acquisition of Nicaragua Gold increases our portfolio of concession areas also outside of Ecuador."

Founded in 2006, Nicaragua Gold owns a procession area of 300 sq m in the gold region of Santa Domingo in Nicaragua and Miramonte Mining plans to upgrade and enhance its processing plant following the deal.

The sales agreement for the acquisition has been signed and Miramonte will take possession of Nicaragua Gold, based in Managua, Nicaragua, on payment of $3.5 million (£1.76 million) in cash and $5 million in common stocks of Miramonte Mining.

Small cap gold mining company Miramonte predicts that the Nicaragua Gold mine could produce 400 tonnes of ore a day in Santa Domingo by the end of 2008.

The company is currently upgrading its existing plant in the Portovelo/Zaruma gold belt in the province of El Oro in Ecuador to increase production capacity to 100 tonnes of ore per day.

 

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