Vancouver company reveals plan for restarting Dufferin gold mine in Nova Scotia

VANCOUVER – A Vancouver company says it plans to acquire and restart a gold-mining operation on Nova Scotia’s east coast.

Resource Capital Gold Corp. (TSXV:RCG) announced Friday that it plans to acquire the Dufferin mine — which is fully permitted but idle since 2014 — and get it operational within about four months after the deal closes.

Dufferin is an underground mining and milling operation east of Halifax near Sheet Harbour, N.S. It was put into receivership in January 2015 after Ressources Appalaches defaulted on $11 million in loans.

RCG says it has a definitive agreement to acquire a 90-per-cent interest in the mine for about US$9.5 million, to be paid in instalments over five years. RCG would also pay a royalty on the mine’s production.

That deal is expected to close by Sept. 30.

In a separate transaction, RCG plans to acquire a 90-per-cent interest in two other mines in the area by purchasing Flex Mining and Exploration Ltd. by Oct. 15.

RCG says it plans to fund recommencement of mining operations through debt but discussions are ongoing.

Note to readers: This is a corrected story. Previous version had Vancouver misspelled in placeline