Sprott Resource Holdings Inc. (TSX: SRHI) has completed previously announced acquisition of 70% of the outstanding equity of S.C. Minera Tres Valles from the Vecchiola Group for an aggregate purchase price of US $39.9 million, consisting of US $33.5 million in cash and US $6.4 million in SRHI common shares.
A total of 51,191,847 SRHI common shares were issued to the Vecchiola Group in connection with the acquisition.
Up closing the of the acquisition, S.C. Minera Tres Valles has been renamed Minera Tres Valles SpA (MTV).
“We are pleased to complete this transaction, which provides us with a majority position in a producing copper mining asset in Chile, one of the world’s premier mining jurisdictions,” said Steve Yuzpe, CEO of SRHI. “We look forward to working closely with our partners at the Vecchiola Group and the MTV management team to advance their development plan and bring this asset to its full operating potential.”
Steve Yuzpe has been elected Chairman of MTV, and Michael Harrison has been elected to the board of directors, along with the interim SRHI nominee Rodrigo Soza. Other directors include Luis Vega Munoz (CEO of MTV) and Jose Monsalve, the nominee of Vecchiola Group.
Minera Tres Valles owns 100% of the currently producing Minera Tres Valles copper mining and refining complex located in Salamanca, Chile.
Vecchiola Group acquired Minera Tres Valles from Vale (NYSE: VALE) in 2013 for reportedly US $25 million.
photo credit: Minera Tres Valles