Rio Alto Acquires Peru Mine

Canadian miner Rio Alto Mining says it has exercised an option to acquire the La Arena fold oxide project in Peru from peer Iamgold for CAD49m in cash. A Rio Alto spokeswoman says the cash comes from a private placement completed on January 20, in which it issued 28.00m common shares at a price of CAD2.05 per share, raising CAD57.50m. The shares were sold by a syndicate of underwriters led by GMP Securities and including Scotia, Clarus Securities and Stonecap Securities. In 2009, Iamgold entered into an option and earn-in arrangement with Rio Alto on the La Arena property. La Arena is expected to begin production in the second quarter of this year. Under the agreement, Rio Alto had an option to acquire 100% of Iamgold’s interest in the property. Iamgold, also based in Canada, says it will use the proceeds to strengthen its financial position and finance the development of its core assets.