Duluth Metals Merges With Franconia Minerals Corp

Duluth Metals Minnesota announced that it is acquiring Franconia Minerals Corporation. The deal, which still needs two-thirds approval from shareholders in February, was unanimously approved by Franconia’s Board of Directors. The Canadian government still has not approved the merger. The deal is simple, at least as far as the land is concerned; two adjoining areas become one large operation. However, the structure of deal is complex because Duluth Metals partner/subsidiary, Antofagasta PLC, the Chilean mining giant, is also involved in the deal and will invest thirty million dollars toward the acquisition.

The combined operations of these contiguous properties will hold mineral rights as well as surface rights, and promising exploration lands to one of the largest emerging undeveloped [platinum group metals] deposits in the world covering about 56,000 acres, in a 10-mile stretch along the Kawishiwi River and Birch Lake from south of Ely. Underground mining is the goal in a formation called the Duluth Complex. Tony Barrett, an economist with the College of St. Scholastica said that Antofagasta is not messing around, and they are a strong vote of confidence for the new mining venture in Minnesota. The fact that they are willing to spend that kind of money just to set the table says that the project makes sense.