Sierra Resource Group has signed a letter of intent(LOI) with the Medina Property Group, to acquire half of the minority interest in the chloride copper mine(CCM) in Arizona, US.
The agreement is to proceed to a final document for the purchase by the company of half of the 20% minority interest in the Chloride Copper Mine in exchange for a cash payment of $1,200,000 and 20 million shares of Class A Common Stock of the Company.
When complete, the purchase would increase the Company’s majority ownership in the Chloride Copper Mine from 80% to 90%.
Sierra Resource Group chief executive officer J Rod Martin said that it is a unique opportunity for the company to increase its ownership in the Copper Chloride Mine, at a fair price based on a discount to future cash flow.
"We’re pleased with the terms of the transaction and feel that this acquisition will add to shareholder value," said Martin.