(Alliance News) - Orosur Mining Inc on Tuesday said negotiations are ongoing over buying Minera Monte Aguila SAS' 51% interest in the Anza project in Colombia.
South America-focused minerals explorer and developer Orosur Mining said if this occurred, it would once again have a direct or indirect interest of 100% in the project.
Colombia-based MMA is the current operator of the Anza project and itself a 50:50 joint venture between Newmont Corp and Agnico Eagles Mines Ltd. It earned its interest in the project under an exploration agreement in 2018.
Orosur Mining said negotiations are ongoing towards buying MMA's interest in Anza, but stressed talks are not final and that there is no certainty that any transaction will be agreed upon or on what terms.
"The parties are examining a range of commercial and structuring options, as well as undertaking prudent due diligence, and as such, finalisation of any agreement may take some time," the company said.
Orosur Mining said further announcements will be made in "due course as the process continues".
"We have stated publicly on several occasions that our desired outcome is to retake control of Anza, and if possible, to also resume 100% ownership of the project. We have been working towards this objective for some months, but we are also focussed on the legal complexities of any such transaction, ensuring that any commercial terms do not negatively impact the viability of the project going forward," said Orosur Mining Chief Executive Officer Brad George.
"We see great potential at Anza and whilst there is no certainty this deal will complete, should it happen, we will then be in the driving seat and be able to take the initiative on the project."
Shares in Orosur Mining were down 7.0% to 3.44 pence each in London on Tuesday morning.
By Greg Rosenvinge, Alliance News senior reporter
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Orosur Mining (OMI)