Newrange Gold Corp. (TSX-V:NRG, OTCQB:NRGOF) and Great Panther Mining Limited (TSX:GPR, NYSE:GPL) are terminating their share purchase agreement for Newrange to acquire the Coricancha gold-silver-copper-lead-zinc mine in Peru.
Newrange CEO and president Robert Archer said they were deeply disappointed to have arrived at this outcome.
“We have been working on this acquisition since March and strongly believe in the potential of the Coricancha Mine,” Archer said. “However, the current market for mining stocks, one of the worst in decades, has created a serious impediment to financing, especially for new acquisitions.”
READ: Newrange Gold inks definitive deal to acquire the Coricancha mine in Peru
“While we attempted to gain an extension to the closing date, the intransigence of Great Panther’s creditors has, regrettably, made that impossible,” Archer added.
Coricancha, located in the central Andes of Peru approximately 90 kilometers east of Lima, is a past-producing mine which Great Panther acquired in June, 2017, and has remained in care and maintenance since then.
Newrange said, as a result of the termination of the acquisition, it would not be proceeding with its proposed financing, share consolidation, and name change at this time, and that it anticipates trading in the company’s shares will resume within days.
Newrange Gold is currently focused on district-scale exploration for precious metals in the prolific Red Lake District of northwestern Ontario.
Great Panther Mining is a precious metals producer focused on the operation of the Tucano Gold Mine in Brazil where the company controls a land package covering nearly 200,000 hectares in the prospective Vila Nova Greenstone belt.
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