New Found Gold (TSXV: NFG) is investing funds into another junior mining corporation in an effort to secure a toll milling agreement.
The explorer has elected to invest US$2.0 million into Maritime Resources (TSXV: MAE) via an offering of non-convertible senior secured notes. Maritime is conducting the financing to fund the purchase of Point Rousse Mining, which owns the Pine Cove Mill.
As part of the funding, New Found has entered into a non-binding memorandum of understanding which will see the explorer conduct due diligence and obtain the exclusive right to negotiate with Maritime over a toll milling agreement at the Pine Cove Mill. The mill is found near Baie Verte, Newfoundland, roughly 270 kilometres by road from Gander, where New Found is based.
“The fully permitted Pine Cove site offers enormous flexibility for gold processing. The MOU with New Found illustrates the mining industry’s commitment to minimizing its environmental footprint by utilizing existing infrastructure,” commented Garett Macdonald, CEO of Maritime Resources.
Pine Cove was in operation as recently as earlier this year, and currently maintains a capacity of 1,400 tonnes per day. The mill has access to port infrastructure and also features a large capacity tailings storage facility.
New Found Gold last traded at $5.85 on the TSX Venture.
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