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(Alliance News) - Orosur Mining Inc on Thursday said Colombian firm Minera Monte Aquila has reduced exploration expenditure on its Anza project, thus placing it into care and maintenance.
Orosur shares were down 26% at 5.00 pence each in London on Thursday afternoon.
The South America-focused minerals explorer and developer said it expects MMA to focus on protecting the asset and maintaining a positive relationship with the local community. MMA is jointly-owned by Agnico Eagle Mines Ltd and Newmont Corp.
Orosur currently owns 100% of Anza, though there is an agreement in place which could see MMA earn-in a stake as high as 75%.
MMA sustained costs in excess of around USD3.7 million during phase one of its exploration of Anza, which may be credited towards the operator's investment obligation of USD4 million for the first year of phase two exploration.
Chief Executive Officer Brad George said: "We respect MMA's decision to reassess Anza and fully understand the complex dynamics and priorities of companies of that size, especially in light of recent mergers. Orosur however sees a tremendous potential at Anza and would welcome the opportunity to get back into the driver's seat if that option is viable."
Orosur also said low reconnaissance work is ongoing at its El Pantano project in southern Argentina, with results so far exceeding the company's expectations. The project has the potential to turn into a large scale gold exploration company, Orosur said.
By Sabrina Penty; Alliance News reporter
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