News: Minera Gold heads to market

Minera Gold (ASX:MIZ) is ramping up copper-gold production in Peru following the acquisition of the San Santiago processing plant and successful commissioning of the CIP gold circuit.

The company has now being granted an ASX trading halt in relation to a capital raising.

The halt will last until the earlier of the announcement being made or the start of trading on Thursday, 4 December 2014.

First gold sales started in late August 2014 with gold production from commissioning phase for the balance of the quarter of 454 ounces.

Management control of plant’s copper toll treatment and production passed to Minera on 17 September 2014 with 2,742 tonnes of copper sulphide ore processed post from that point up to the end of the quarter for third parties.

Funding for the acquisition of San Santiago was provided by resource investment house, SilverStream SZEC, and through a mezzanine debt facility with an existing shareholder of Minera Gold.

It is primarily non-dilutive to Minera shareholders and immediately earnings accretive.

The company reported positive cash flow of $227,000 for the quarter including $100,000 from the 13 days that it had control of the copper flotation circuit.

It has also acquired 9,000 hectares of surrounding exploration and mining concessions including three historic copper mines, with one in production today under contract.