Canadian gold explorer Minnova Corp (CVE:MCI) has embarked on an interesting new strategy to considerably reduce its carbon footprint while at the same time eliminating a hydro liability which has been on the miner’s balance sheet since 2011.
Minnova Corp is located in Canada’s Manitoba province and is focused on getting an existing gold mine up and running again. Its management team believes that there is scope for finding further gold on the property and using existing infrastructure to get the mine back into production.
New deal to acquire power line
The company has reached an agreement to buy the power line that connects the mine to the Manitoba Electrical Grid. The line is currently owned by Manitoba Hydro, and Minnova said it expected to conclude the deal in January.
The power line infrastructure consists of a partially refurbished twenty-two kilometer, 3-phase 25kVa power line that connects the existing mine site electric distribution grid with the Manitoba Hydro electric grid at a sub-station located at Sherridon MB. The purchase price for power line is $150,000 in cash.
Minnova’s renewable energy strategy
The deal means that Minnova can push ahead with a renewable energy strategy that could see it developing and producing green energy and also using this as part of its mine re-start project. Its CEO is convinced that the new string to its bow will further add to the value of the project, plus also take the company in interesting new directions.
“Our goal is to produce the greenest ounce of gold possible,” said Gord Glenn, CEO of Minnova Corp. “Beyond contributing green energy to PL Gold Mine’s energy demand mix we also see opportunity to position Minnova Renewable Energy at the forefront of northern green energy transition and potentially expand its revenue base by selling power back into the existing electrical grid.”
Private placement of 5m shares
The miner also announced it had launched a non-brokered private placement for 5m shares at a price of 10 cents. We understand that this has been oversubscribed from the existing shareholder base.
The proceeds of the offering will be used for the purchase of the power line from Manitoba Hydro and work programs related to: a) renewable energy development plans and b) exploration and re-start of mining operations at the company’s PL Mine including; resource expansion and exploration drilling, updated metallurgical test work and revised and updated NI 43-101 technical reports, as well as for general working capital purposes.
“Green energy projects are gaining momentum”
“Green energy projects are gaining momentum and I firmly believe that this adds another ‘value proposition’ to the Minnova Corp platform,” explained Glenn. “The existing VP’s are the mine restart (NPV value) and of course exploration upside.”
Unlike the PL mine, which is stationary, Minnova believes renewable energy has no limits to where this strategy can be deployed. The management team says it is looking at European and Latin American development opportunities to implement its green energy strategy and reduce CO2 and generate green energy in the form of hydrogen.