In October, Star Mountain Resources announced that it had
entered into three-way definitive agreements with Northern Zinc, LLC and HudBay
Minerals, Inc. (NYSE: HBM) to acquire Balmat Holding Corporation – including
St. Lawrence Zinc Company, LLC and its mining operations in the Balmat mining
district of St. Lawrence County, New York. This morning, SMRS provided an
update on this transaction, announcing that it had met all of the closing
conditions in the purchase agreements, and, as a result, the acquisition has
now closed.
“We are delighted to have closed this transaction with
Northern Zinc and HudBay and thank the teams at both companies for their help
in making this transaction happen,” Joe Marchal, chief executive officer of
SMRS, stated in a news release. “The team we have assembled has world class
financial and mining experience that we believe will enable the company to grow
into a successful global base and precious metals mining group.”
In total, the Balmat mining complex encompasses a permitted
and equipped zinc mine, a floatation mill, an office structure and necessary
infrastructure related to the operation of the mine. Additionally, SMRS will
acquire just under 2,700 acres of fee simple real estate and more than 50,000
acres of mineral rights as part of the transaction.
Although operations at the Balmat mine were suspended in
2008 as a result of low commodity prices, there are no legal or regulatory
hurdles preventing the immediate commencement of mining operations following
SMRS’s acquisition. The complex’s care and maintenance team has kept mining
permits current, MSHA inspections up-to-date and environmental controls and
conditions in regulatory compliance throughout the seven-year period.
With the Balmat acquisition now complete, SMRS is in a
strong position to move forward with its ongoing transformation from a junior
mining company to a producer. The company will also look to benefit from a
potentially long-term relationship with Northern Zinc, which employs a full
roster of mining industry professionals with decades of valuable technical and
managerial experience.
SMRS has previously announced intentions to build on the
momentum provided by this acquisition in order to improve its cash flows and
initiate efforts to uplist to a national stock exchange. For prospective
shareholders, this upside makes SMRS an intriguing investment opportunity.
“Based on data provided to us during our due diligence on
this… acquisition, we believe that the [Balmat] base metal mine opportunity
presents to us the possibility of outstanding cash flows in the near term,”
continued Marchal. “We intend to upgrade and modernize certain infrastructure
systems, develop additional access to existing mining areas and restart
production at this mine within six to nine months.”
For more information, visit www.starmountainresources.com
About QualityStocks
QualityStocks
is committed to connecting subscribers with companies that have huge potential
to succeed in the short and long-term future. We offer several ways for
investors to find, evaluate, and learn more about investing in these companies.
The Quality Stocks Daily Blog http://blog.qualitystocks.net
The Quality Stocks Daily Videos http://videocharts.qualitystocks.net
The Quality Stocks “Ones to Watch” http://gotstocks.qualitystocks.net
Please see disclaimer on the QualityStocks website: http://disclaimer.qualitystocks.net
No comments:
Post a Comment