Orosur Mining Inc. completed a nonbrokered private placement of US$2 million and entered into a joint venture agreement with Newmont Mining Corp. for the Anza gold project in Colombia.
Under the agreement, Newmont can earn up to 75% of the project through a three-phase earn-in by spending at least US$30 million over 12 years, completing a feasibility study and paying Orosur US$4 million cash.
Upon completing the three phases, if Orosur elects Newmont to fund all the expenditures until the start of commercial production, Newmont's ownership will increase by 5% to 80% of the project. According to a Sept. 10 release, Newmont will also receive 90% of Orosur's distribution of earnings.
Additionally, Newmont purchased 29,213,186 common shares at 9.1 Canadian cents per share and now owns about 19.9% of the company. The proceeds will mainly be used for testing and advancing the project.
In October 2017, Orosur planned up to 15,000 meters of core drilling at Anza.