Mineweb reported that Zinc and lead producer Nyrstar has reanimated after a difficult year adopting a bullish, expansionist faith in zinc and lead.

Vancouver based junior miner Gold Hawk Resources said that it has entered into an agreement that will allow Belgium based zinc and lead producer Nyrstar to acquire an 85% interest in the junior company's Peruvian operating subsidiary for USD 15 million.

As part of the transaction, Nyrstar will assume Gold Hawk's guarantee in respect to its subsidiary Compania Minera San Juan's USD 13 million senior debt facility payable in February 2010. Nyrstar has also agreed to loan up to USD 20 million to CMSJ to fund restart and expansion cost for the Coricancha Mine.

Following the all cash offering, Gold Hawk will be debt free have USD 15 million in cash and own a 15% interest in the Coricancha mine, which could be in production during the H1 of 2010. The USD 20 million Nyrstar loan to CMSJ is expected to be sufficient to finance the mine restart. The transaction is expected to be completed in November 2009.

Coricancha is expected to annually produce 20,000 DMT of zinc concentrate, 15,000 DMT of lead concentrate, 45,000 ounces of gold and 2.4 million ounces of silver.

The CMSJ transaction is the second investment made by Nyrstar this week. The company acquired a 19.9% interest in Ironbank Gold's Citronen zinc lead deposit in Northern Greenland.

(Sourced from Mineweb.com)