Nov 21 2015
First Mining Finance Corp. ("First Mining") is pleased to announce that it has signed an option agreement (the "Agreement") with Exploraciones Mineras Peñoles, S.A. de C.V., an indirect Mexican subsidiary of Industrias Peñoles S.A.B. de C.V. under which Peñoles may acquire First Mining's Puertecitos and Los Tamales copper properties (the "Properties") located in northern Sonora, Mexico within the prolific Sonora-Arizona, Copper Belt.
The region hosts large copper-molybdenum porphyry deposits, such as at the world-class Cananea and La Caridad copper mines. All dollar amounts included in this news release are expressed in U.S. dollars.
Peñoles has a market capitalization of approximately $4.8 billion and is a Mexican conglomerate involved in the extraction, smelting and refining of non-ferrous metals as well as the production of chemicals.
Keith Neumeyer, Chairman of First Mining stated, "The signing of this agreement is an important first step in executing on our mineral bank's business model of monetizing assets in our portfolio by entering into agreements with major mining companies that move the projects forward while First Mining retains residual interests in the properties. This is an early example of one way we intend to unlock value for our shareholders."
TERMS OF THE AGREEMENT:
Under the Agreement, Peñoles may earn-in up to a 100% interest in the Properties by paying to First Mining a total of $1.5 million over five years. If Peñoles completes the acquisition of the Properties, First Mining will retain a 2% net smelter return (NSR) royalty, which may be purchased by Peñoles. All mining concession taxes and assessment work for these properties as required by law, will be paid by Peñoles.
About First Mining Finance Corp.
First Mining is a mineral property holding company whose principal business activity is to acquire and hold high-quality mineral assets with a focus in the Americas. First Mining currently holds a portfolio of 21 mineral assets in Canada, Mexico and the United States with a focus on gold. Ultimately our goal is to increase our portfolio of mineral assets through acquisitions which are expected to be comprised of gold, silver, copper, lead, zinc and nickel and to monetize assets in our portfolio by entering into agreements with major mining companies.