LONDON (Alliance News) - Orogen Gold PLC on Wednesday said it completed the USD2.5 million earn-in on the Mutsk property in southern Armenia prior to the required date of August 31.
The USD2.5 million exploration expenditure Orogen was required to pay relates to a joint venture agreement signed with its Armenian partner Georaid CJSC in February 2014 regarding the site.
Gold exploration company Orogen said it will now proceed to exercise its option to buy an 80% interest in its Georaid, which holds the exploration licence covering the Mutsk property.
The current Georiad principals have the option to maintain their 20% interest in the project by funding their pro-rata share of future exploration expenditure or they may opt to dilute their interest further by not contributing to future costs, Orogen said.
"This is a significant milestone in our joint venture on the Mutsk gold project. This completed earn-in is coincident with our pleasing technical results from our previous two drilling programmes. We have yet to report on the final drill holes but the overall prognosis is that the Mutsk property has significant potential to grow in strike length and to the east," said Orogen Chief Executive Colin Bird.
Shares in Orogen were down 11% at 0.0210 pence on Wednesday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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