Santa Fe Gold said Tuesday that it has signed its merger agreement with International Goldfields Ltd., an Australian gold exploration firm.
When the merger becomes effective in the second quarter, Santa Fe Gold (OTCQB: SFEG) President and CEO Pierce Carson will serve as president of the combined company, Santa Fe Gold said in a news release.
Santa Fe Gold operates the Summit Mine in southwestern New Mexico and a mill at Lordsburg. It recently signed an agreement to sell a South Korean smelting company 360 metric tons of gold-silver concentrate. It said the contract with LS Nikko in Osan could be worth up to $12 million based on the current value of gold and silver.
For the three months that ended Dec. 31, Santa Fe Golds revenue was $4.4 million, a 127 percent increase from the same period a year earlier.
Despite the revenue increase, the Albuquerque-based gold and silver exploration and mining firm lost $2.9 million in the quarter, up from $2.7 million a year earlier. Those losses were primarily due to higher depreciation and amortization charges and by exploration expenses at its Ortiz Mine in New Mexico, the company said.
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