Irish mining and exploration company Minmet this morning said it is selling its Dominican Republic subsidiary Exploration & Discovery Latin America E&D in an all-share deal to Canadian company Wellington Cove Explorations.
The transaction, which is classed as a reverse takeover, will result in Wellington shares returning to trading on the TSX Venture Exchange after refinancing and corporate reorganisation.
The deal will give MinMet a 92 per cent stake in Wellington. MinMet said it will attempt to raise equity financing for either E&D or Wellington from third parties. This would dilute MinMet's holding in Wellington.
E&D owns 21,671 hectares of gold exploration properties with drill targets in the Dominican Republic as well as a 51 per cent interest in 6,945 hectares in two projects in joint venture with Energold Mining. It also has an option on the Longyear project from Energold as announced on December 2nd.
The Dominican Republic land package borders the Pueblo Viejo gold-silver mine, which has produced 5.4 million ounces of gold and 24.6 million ounces of silver.
Placer Dome is currently preparing a pre-feasibility study on Pueblo Viejo and E&D is carrying out soil geochemical grid sampling and mapping.
E&D is also in a joint venture in the western Dominican Republic with Gold Fields of South Africa.