Orosur Mining release update at its Anzá project

The project is subject to an exploration agreement with venture option with Colombian company Minera Monte Águila (MMA). MMA is itself a joint venture between Newmont Corporation and Agnico Eagle Mines Limited, and is the Colombian entity by which these two companies jointly exercise their rights and obligations with respect to the exploration agreement over the project.

Orosur has announced that the company and MMA are advancing negotiations of a joint venture agreement (mining company constituent documents) that would govern the development and operations of the project. The joint venture will operate under a new Colombia legal entity (the mining company) that would hold the project mining concessions and applications, with MMA as manager. The process to create the mining company has now commenced and is expected to take several months to complete. During this process, MMA will be able to continue exploration at the project, and any expenditures incurred by MMA during this interim period will form part of the phase 2 qualifying expenditures.

In the meantime, MMA has agreed to pay the US$2 million phase 2 payment contemplated by the exploration agreement to Orosur, in advance of finalising the mining company constituent documents. Funds are expected to be received from MMA soon.

After the formation of the mining company and entering into the mining company constituent documents, as per the phase 2 earn-in provisions, MMA may earn an additional 14% ownership in the mining company if it has spent US$20 million in qualifying exploration expenditures on the project on or prior to the fourth anniversary of the parties entering into the mining company constituent documents. If the Phase 2 earn-in is completed, MMA would own 65% of the mining company and the company would own the remaining 35%.

Orosur Executive Chairman Louis Castro commented:

“We are pleased that MMA will be advancing to phase 2 of the project and that the US$2 million will be paid soon. Both actions support the company’s continued belief in the strength and potential of the project”.

Read the article online at: https://www.globalminingreview.com/mining/17012023/orosur-mining-release-update-at-its-anz-project/