Connect with us

Hi, what are you looking for?

Wednesday, Jun 19, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.


Mako Mining to expand Latin America portfolio with Goldsource Mines acquisition

Goldsource’s Eagle Mountain project in Guyana is worth about US$292 million

Mako Mining to expand Latin America portfolio through acquisition of Goldsource Mines
Sign near the Eagle Mountain gold project, Guyana. Photo credit: Goldsource Mines

The Nicaragua-focused gold producer Mako Mining Corp. (TSX-V: MKO) will be expanding its portfolio downward into South America this year.

Mako announced Tuesday that it has signed an agreement to acquire Goldsource Mines Inc. (TSX-V: GXS). Through acquiring the Guyana gold operator, Mako will receive its flagship Eagle Mountain project.

Based on a 2022 estimate, that operation is valued at about US$292 million, is estimated to yield a 57 per cent internal rate of return and will have a 15-year lifespan. Mako claims that the geological similarities between its San Albino mine in Nicaragua and the Guyana project will enable streamlined development and gold extraction.

Mako’s chief executive Akiba Leisman stated that combining the companies will create an operator with far greater capabilities than what each could bring to the table individually. “The scalability of Goldsource’s Eagle Mountain is a direct analogue to that of Mako’s San Albino mine,” he said.

Per estimates, Eagle Mountain holds just over 1.8 million ounces of indicated gold. Nearly 26,000 metres of drilling were completed at the site in 2021 before the last mineral resource estimate the following year.

Once the transaction concludes, Mako shareholders will own 84 per cent of the combined company while Goldsource shareholders retain a 16 per cent stake.

“The significant broadening of technical bandwidth, including Mako’s mine development and construction expertise, is expected to expedite the timeline for establishing the Eagle Mountain Project as a near-term, low capital intensity development opportunity,” Goldsource CEO Steve Parsons said.

Read more: BMO underwriters agree to invest C$100M in Calibre Mining

Read more: Calibre Mining added to VanEck Gold ETF

Mako has significant success in Central America

The company reported a series of impressive drill results from an area near its flagship Nicaragua mine in late January. They included 51.8 g/t gold throughout a 3.9-metre intercept and 25.75 g/t Au over 2 metres.

Mako also reported a 134 per cent sequential rise in gold sales for Q4 last year. The gold producer generated 13,481 ounces throughout the quarter.

Nicaragua is Central America’s number one gold-producing nation. More broadly, mining exports are the country’s top source of revenue.

Other companies currently capitalizing on the country’s resources include Mineros S.A. (TSX: MSA), Condor Gold (TSX: COG) and Calibre Mining (TSX: CXB) (OTCQX: CXBMF).

Over 25 mining companies from Canada, the United States and Australia are currently active in Guyana. In 2022, the nation produced over 486,000 ounces of gold.

Drilling underway at Eagle Mountain. Photo credit: Goldsource Mines


Calibre Mining is a sponsor of Mugglehead news coverage


Follow Mugglehead on X

Follow Rowan Dunne on X

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like


Drew Heasman and his team just won the Future Explorer's competition organized by Humyn AI


President Jeong Ki-seop traveled to Chile on Friday too where he met with senior officials from the nation's mining ministry


"The initial surveys are poised to deliver robust insights utilizing multiple sensors," Draganfly co-founder Cameron Chell said

Alternative Energy

Bisconti Research found that 77 per cent of 3.5 million survey participants were in favour of atomic energy