Though Chinese funding failed to materialize, International Minerals (TSX: IMZ) said it is in talks with an alternate suitor for its Rio Blanco gold-silver project and Gaby gold project in Ecuador, the silver miner reported.
Last November International Minerals (IMZ), which holds a 40 percent stake in the Hochschild-operated Pallancata silver mine in Peru, had signed a memorandum of understanding (MOU) with China CAMC Engineering to arrange financing to build Rio Blanco and Gaby.
But it wasn’t to be. International Minerals said China CAMC Engineering could not put together proposed debt financing.
International Minerals cited “increasingly restrictive financing conditions in China” as the reason why China CAMC Engineering could not arrange financing.
The two potential partners did discuss alternatives to the MOU, International Minerals said, but “acceptable financing could not be arranged.”
As a result no definitive agreements were signed and the MOU expired.
Though the debt-deal with the Chinese is now dead, International Minerals dangled another carrot, this one from Canada. It said it was “currently in discussions with a Canadian company regarding a potential transaction for the sale of the Rio Blanco and Gaby projects.”
International Minerals also said it hoped to negotiate a production contract for Rio Blanco with the Ecuadorian government “in the near future.” - Mineweb.com
on July 2, 2011. Filed under Precious metals.
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