ConSil Corp. of Spokane said Wednesday it plans to purchase the assets of Minas la Colorada S.A. of Mexico.
Principal shareholders of Minas la Colorada will receive four million common shares for the assets. ConSil will assume $3 million of MLC’s debt.
Once this financial package is carried out, the company, will no longer be a subsidiary of Hecla Mining Co.
ConSil will reopen the Recompensa mine and expand production at the Candelaria mine in the Zacatecas province of Mexico. Total cost for expansion and exploration is $8 million.
The transaction still needs approval from the Vancouver Stock Exchange, and ConSil must raise $6 million by Aug. 1 to help pay MLC’s debts and cost of the mines’ expansions.
Subscribe to the Morning Review newsletter
Get the day’s top headlines delivered to your inbox every morning by subscribing to our newsletter.