Alianza Minerals (ANZ.V) has signed a LOI with Coeur Mining (CDE) to jointly explore the Tim property in Canada’s Yukon Territory. Coeur is a logical partner for Alianza as Coeur’s Silvertip mine (which is currently being ramped up to full production) is just over 12 kilometers away from Tim.
As part of the agreement, Coeur Mining will be able to earn an initial 51% interest in Tim by spending C$3.5M (over 5 years) and wiring C$275,000 in cash to Alianza Minerals, which will help to fund the overhead expenses of the latter. Upon establishing this 51% stake, Coeur will have the option to earn an 80% stake by completing a feasibility study (within three years) and continuing to make payments to Alianza Minerals to the tune of C$100,000 per year.
On the back of this agreement, Alianza Minerals decided to raise C$750,000 in a 2/3 hard dollars and 1/3 flow-through raise, but the agreement with Coeur Mining grabbed the attention Alianza was hoping for and the oversubscribed placement was subsequently increased to C$1.1M raising almost C$700,000 in hard dollars and just over C$400,000 in flow-through dollars that will help the company to fund its upcoming work programs in BC and the Yukon. The hard dollar units were issued at C$0.05 and consisted of one share and a 3 year warrant at C$0.10, the flow-through units were priced at C$0.06, no warrant was attached.