Treasury Metals cancels Pico Machay acquisition
Canadian explorer Treasury Metals (TSE:TML) said Monday that it will not be completing the acquisition of the Pico Machay gold project in Peru from Pan American Silver (TSE:PAA) on the previously negotiated terms.
The company also said it will not be proceeding with the public offering of $16 million of its common shares in connection with the Pico Machay deal.
The Pico Machay property is a high-sulphidation gold deposit that lies within the northern extent of the Southern Peru Epithermal Gold-Silver Belt.
Originally announced in May, the closing date of the deal was extended a number of times beyond the initial anticipated closing date in July.
The 4,823 hectare project is in near-term mine development stage, and preliminary engineering and metallurgical testwork are expected to support a low-cost, heap leach operation, with low capital investment required. Current measured and indicated resources at Pico are estimated at 270,000 ounces, plus an additional 450,000 inferred ounces.
Treasury has previously estimated that Pico Machay has the potential to initially produce 50,000 to 75,000 ounces of gold per year.
The company also said Monday it will release a new resource estimate for its flagship Goliath gold project located in Dryden, Ontario later in the week ending November 11.
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