Ressources Appalaches acquire Dufferin Resourcesadmin
With the acquisition of 100% of Dufferin Resources Inc., Ressources Appalaches has become the sole owner of the Dufferin Mine, located in Nova Scotia. The transaction comprised the acquisition of the ramp-access Dufferin Mine, along with its processing plant (mill), mining lease, environmental permits and all infrastructure required for production.
Ressources Appalaches proceeded with the verification of: the gold-bearing structure extensions, the state of the mill and the rate of gold recovery in addition to the usual corporate searches. The Company completed the purchase and will reactivate the equipment and resume of production.
The cost of the transaction was established at $4,000,000, payable in four instalments spread over three years: a first instalment of $500,000 payable following a due-diligence check lasting no more than five months; a second instalment of $500,000 11 months after the signature; a third instalment of $1,500,000 23 months after signature; and the final instalment of $1,500,000 35 months after signature of the agreement. Once the final payment has been made, the acquisition will be free of all royalties. In the meantime, Appalaches must pay a royalty of 2% to Dufferin Resources. Any net income from production will be applied to these payments.
More information on the transaction are available on the Company’s website at www.ressourcesappalaches.com.