Orosur says talks with Minera on potential joint venture progressing

(Alliance News) - Orosur Mining Inc on Tuesday said talks with Minera Monte Aguila over a ...

Alliance News 17 January, 2023 | 5:20PM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - Orosur Mining Inc on Tuesday said talks with Minera Monte Aguila over a potential joint venture for Orosur's flagship Anza project in Colombia are progressing.

The South America-focused minerals exploration and development company said the negotiations were regarding the completion of the Mining Company Constituents documents with Minera, a Medellin, Colombia-based company operating in the mining and metals sector.

Orosur said Minera has agreed to make a USD2 million phase 2 payment contemplated by the exploration agreement to Orosur, in advance of finalising the Mining Company Constituents Documents. The funds are expected to be received soon.

Further, the process of forming a new joint-venture company is underway, according to Orosur. It will hold a 49% stake, whereas Minera's will hold a 51% interest.

After the formation of the mining company and entering into the Mining Company Constituents Documents, Minera may also earn an additional 14% ownership if it has spent USD20 million in qualifying exploration expenditures on the project on or prior to the fourth anniversary of the parties entering the Mining Company Constituents Documents.

If this phase 2 earn-in is completed, Minera would own 65% of the joint-venture mining company to Orosur's remaining 35%, Orosur said.

"We are pleased that Minera will be advancing to phase 2 of the project and that the USD2 million will be paid soon. Both actions support the company's continued belief in the strength and potential of the project," said Orosur Executive Chair Louis Castro.

Shares in Orosur closed down 2.5% to 8.58 pence each in London on Tuesday.

By Greg Rosenvinge, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2023 Alliance News Ltd. All Rights Reserved.

Email Form Facebook Twitter LinkedIn RSS

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Orosur Mining Inc 4.75 GBX -2.06 -
Orosur Mining Inc 0.07 CAD -12.50 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures