Northern Colombia Holdings, a wholly-owned subsidiary of AngloGold Ashanti, owns an exploration title package comprised of mining concession agreements covering approximately 36 000 hectares of land.
This package includes the rights to acquire mining concessions over approximately 215 000 hectares of land in prospective mineral belts in the Nariño, Cauca and Antioquia departments of Colombia.
This Transaction supports the company’s broader strategic objective to maintain a focused and efficient portfolio. In Colombia, AngloGold Ashanti will focus on its key projects in the region, particularly Quebradona and Gramalote.
The sale of the exploration title package under Northern Colombia Holdings Limited represents approximately 70% by area of the exploration titles outside of AngloGold Ashanti’s three key projects in Colombia. Upon closing of the Transaction, AngloGold Ashanti will receive a cash payment of approximately US$4.6 million. Further payments will be made to AngloGold Ashanti in the event of certain milestones being achieved by Royal Road Minerals including:
- US$5 million upon the declaration of an inferred mineral resource of not less than one million gold equivalent ounces on any specific area (‘Specific Project’);
- US$5 million on completion of a feasibility study for any Specific Project;
- US$5 million on commencement of commercial production for any Specific Project; and
- US$20 million in four equal quarterly payments in the first year following the commencement of commercial production for any Specific Project.
In the event Royal Road Minerals declares an inferred mineral resource of not less than five million gold equivalent ounces on a Specific Project, AngloGold Ashanti has a once-off option to purchase a 75% interest in that Specific Project and certain of the receipts mentioned above are then forfeited for that Specific Project. Closing of the Transaction is subject to certain conditions precedent, including the completion of a capital raise of at least US$3.5 million by Royal Road Minerals and the receipt of certain regulatory approvals by Royal Road Minerals and AngloGold Ashanti.
Read the article online at: https://www.globalminingreview.com/mining/06032019/sale-of-greenfields-exploration-tenements-in-colombia/