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(Alliance News) - Orosur Mining Inc's joint venture partner, Minera Monte Aguila, on Friday provided the company with a phase one earn-in notice for the Anza project in Colombia.
Shares in the Toronto-based mineral exploration and development company focused on South America were trading 7.3% higher at 14.75 pence each in London on Friday morning.
Minera Monte Aguila have completed all of the phase one obligations under the exploration agreement, including investing USD10 million in the Anza project. It will shortly enter phase two under the exploration agreement.
Minera Monte Aguila is itself a joint venture between Newmont Corp and Agnico Eagle Mines Ltd, and is the Colombian entity by which these two companies jointly exercise their rights and obligations with respect to the exploration agreement over the project.
Orosur and Minera Monte Aguila will now begin the process of forming a new mining company. Phase two will begin when this new company is formed and the joint venture agreement is signed.
Orosur will have a 49% ownership interest in the company with Minera Monte Aguila taking the remaining 51%.
Minera Monte Aguila may earn an additional 14% ownership in the company by spending USD20 million in qualifying expenditures on the project. If the phase two earn-in option is completed, Minera Monte Aguila would own 65% of the new company with Orosur holding 35%.
The Anza project is based in Colombia and on Tuesday returned drilling results which the Chief Executive Officer said were "a spectacular demonstration of the potential of the Anza Project."
Orosur Executive Chairman Louis Castro commented: "We are delighted to have reached this key stage in the exploration agreement. Together with our partners we are starting to prepare for phase two of the project, and we look forward to accelerated exploration activities during this period."
By Chris Dorrell; chrisdorrell@alliancenews.com
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