(Alliance News) - Polo Resources Ltd on Wednesday announced that, alongside Andina Gold Corp, it has inked an assignment of rights agreement with FenixOro Gold Corp in the attempt to achieve "some return" on an investment made in 2011.
The investment company with interests in oil, gold, coal, copper, phosphate, lithium, iron and vanadium made a USD4 million investment in gold exploration company Adina in 2011.
The investment allowed Andina to acquire fully the San Bolivar gold project, a greenfield exploration project in Colombia, from R&C Group SAS and other parties.
Delays in licence registration led to the Andina joint venture being terminated in 2012.
Polo Resources has a 62% interest in Andina.
Polo Resources and Andina now have assigned their embargo and seizure rights over the mining titles of R&C to FenixOro for CAD440,000 in shares.
Polo Resources believes that, through the equity position in FenixOro, there is good potential in the exploration of the block, particularly as gold prices surge.
FenixOro is a recently listed Canadian company with a focus on acquiring gold projects with good exploration potential in the best gold producing regions of Colombia.
Polo Resources also is trying to recover USD3 million in surface fees that were paid in advance for mining titles to Colombia's national mining agency.
Polo Resources shares were down 6.8% at 1.30 pence each on Wednesday morning in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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