(Alliance News) - Anglo Asian Mining PLC on Tuesday said it has entered into a proposed joint-venture with Conroy Gold & Natural Resources PLC which could see it take a 55% stake in the Longford Down Massif gold project in Ireland.
Anglo Asian shares closed 2.3% lower in London on Tuesday, at 130.00 pence each. Conroy Gold's stock surged 40% to 21.00p.
Anglo Asian Mining will initially take just shy of an 18% working interest, in exchange for committing to spending EUR2 million in a primary expenditure programme.
It will have the option to boost this to 25% by spending a further EUR2 million and has the option to take the 55% interest in exchange for "committing to meet the expenditures of the secondary expenditure programme", Conroy Gold explained.
The deal will see Anglo Asian has been awarded 320,000 warrants for Conroy Gold shares at 16 pence, with an option for an additional 1.6 million shares when the joint-venture is completed.
Conroy Gold Chair Richard Conroy said: "The Heads of Terms agreement with Anglo Asian is a very significant step forward for Conroy Gold and its shareholders as we move to develop a gold mine at Clontibret and to further explore the district scale gold trend we have discovered in the Longford-Down Massif. Anglo Asian is an established gold producing company generating significant positive cashflow and is debt free. I am particularly encouraged by its expressed intention to proceed with the project in the immediate term."
By Eric Cunha; ericcunha@alliancenews.com
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Conroy Gld&nres (CGNR)
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