Honduras: Zinc Mine Passes into Canadian Hands

The Belgian company Nyrstar sold to Morumbi Resources 100% of the subsidiary American Pacific Honduras, owner of the El Mochito zinc mine.

Wednesday, October 12, 2016

From a press release by Morumbi Resources:

Toronto, Ontario, September 22, 2016 – Morumbi Resources Inc. (“Morumbi” or the “Company”) (TSX-V:MOC) is pleased to announce that it has entered into a share purchase agreement (the “Agreement”) with certain affiliates of Nyrstar NV (collectively "Nyrstar") to purchase 100% of Nyrstar's indirect subsidiary American Pacific Honduras SA de CV ("AMPAC") and its flagship asset, the producing El Mochito Zinc Mine (collectively "El Mochito") in Honduras (the “Transaction”).

In connection with the Transaction, Morumbi has engaged Dundee Securities Ltd. (“Dundee” or the "Agent") as financing agent in respect of a brokered private placement offering (the “Offering”) of subscription receipts (the “Subscription Receipts”) for minimum gross proceeds of C$19,500,000 with an over-allotment option (the “Over-Allotment Option”) for up to an additional 15% of the Subscription Receipts (the “Offering”) in order to finance the Transaction and capital expenditures and provide working capital, as described below.  Subject to the satisfaction of customary closing conditions, including the approval of the TSX Venture Exchange, the Offering is expected to close on or about October 12, 2016.

Investment Highlights

  • El Mochito generates immediate positive cash flow from a mine with an almost continuous operating history dating back to 1948
  • Significant zinc revenue stream with silver and lead credits *
  • In 2015, El Mochito produced 23,000 tonnes of zinc, 9,800 tonnes of lead and 1.1 million ounces of silver *
  • The Transaction provides Morumbi with access to an experienced operations team from the El Mochito mine site, complementing the current Morumbi management
* Source:  Nyrstar's 2015 Mineral Resource and Mineral Reserve Statement dated April 27, 2016.

Chris Buncic, President and CEO of Morumbi stated, “El Mochito has a long operating history, supported by the mining community at the nearby town of Las Vegas, Honduras, and has many attractive attributes: promising exploration upside, expansion opportunity, and a long mine life. El Mochito was a cornerstone asset for Nyrstar and before that Breakwater Resources, and after a long search for the right acquisition, we believe El Mochito will be the cornerstone for Morumbi.”
He continued, “El Mochito represents a highly accretive opportunity for Morumbi to acquire an asset at the bottom of the valuation cycle. Our operations team and the current mine management believes there are multiple opportunities to unlock value from El Mochito which will structurally change the mine’s operations. With an industry standard concentrate off-take agreement between Morumbi and Nyrstar, we look forward to a strong partnership going forward.”

El Mochito Overview

The El Mochito mine, located in north-western Honduras, approximately 88 kilometres south-west of San Pedro Sula and 220 kilometres north-west of the capital city, Tegucigalpa, has been in operation since 1948. The underground operation takes advantage of selective and bulk underground mining methods to mine multiple flat lying manto deposits and high-grade vertical chimneys.

As disclosed in Nyrstar's 2015 Mineral Resource and Mineral Reserve Statement dated April 27, 2016, the 2,300 tonne per day operation sees ore crushed and milled before undergoing standard flotation to produce a zinc-silver concentrate as well as a lead-silver concentrate.

¿Busca soluciones de inteligencia comercial para su empresa?

More on this topic

Nicaragua: $100 Million Invested in Gold Mines

July 2019

Canada's Calibre Mining bought from B2Gold Nicaragua, the El Limón and La Libertad gold mines, as well as the Pavon project and other concessions, in a transaction that totaled $100 million.

The El Limón and La Libertad mines have produced more than 1.4 million ounces of gold since 2010, and their combined production of gold in 2019 is projected to be between 150,000 and 160,000 ounces, the company said in a statement.

Guatemala: Marlin Gold Mine May Be Sold

August 2016

The sale of the mine is part of a marketing plan for some of the assets owned by the Canadian concessionaire Goldcorp.

In addition to the operations of the Marlin mine, Goldcorp has put on sale its gold and silver mine Los Filos in Mexico, and also is studying alternatives to offload the Alumbrera mine in Argentina.

Panama: Agreement Between Mining Companies for $60 million

May 2014

Petaquilla Minerals has agreed to the sale of 1,483 acres to the Canadian company First Quantum, owner of the Cobre Panama project.


Agreement for $60 million signed between Minera Panama SA and Petaquilla Minerals Limited
May 8, 2014

Belgium Mining Company in Honduras

March 2012

Belgian mining company Nyrstar has bought 92.3% of the shares in Breakwater, the principal partner in El Mochito, the American Pacific Honduras mine.

Belgian-based multinational Nyrstar paid $626 million for 92.3% of the shares of Breakwater, principal partner in the American Pacific Honduras mine (known as Ampac or El Mochito), through its Canadian subsidiary, Nyrstar Resources Canada.