Business
Acquires controlling interest
Acquires controlling interest.
About this update from Hochschild Mining Plc
[{"type":"text","content":"\n RNS Number : 2985U Hochschild Mining PLC 13 October 2010 \n \n\n \n13 October 2010 \n \nHochschild acquires controlling interest in Inmaculada project in southern Peru cluster \n \nTransaction highlights \n· Value accretive acquisition to increase holding in Inmaculada to a controlling 60% interest \n· Initial cash consideration of $15 million and agreement to fund 100% of the project's first $100 million of capital expenditure \n· $20 million private placement in joint venture partner, International Minerals Corporation \n· Commitment by the joint venture to complete 20,000 metres of drilling annually for the first three years in areas outside of the main Angela vein\n \nInmaculada project\n· Potential to generate pre-tax cashflow1 of $1,026 million non-discounted, $699 million at a 5% discount rate and $483 million at a 10% discount rate\n· IRR of over 50% at current spot prices \n· Estimated average annual total silver equivalent production of 11 million ounces\n· Estimated average annual attributable silver equivalent production of 6.6 million ounces, representing 25% of Hochschild's anticipated 2010 production \n· Feasibility study to be completed by the end of 2011 with production to commence in 2014\n· Main Angela vein remains open with significant additional upside potential in several other structures within the property\n \nHochschild Mining plc (\"Hochschild\") is pleased to announce that it has reached an agreement with its joint partner International Minerals Corporation (\"IMZ\") to increase its stake in Inmaculada, a 20,000 hectare gold-silver project located within its existing cluster in southern Peru. This follows positive results from an independent scoping study reported last month by IMZ, which estimated average annual total silver equivalent production of 11 million ounces from the project's Angela vein. The project currently reports total resources of 115 million silver equivalent ounces (1.9 million g...