Cuban state-owned miner GeoMinera SA selected PanTerra Gold Ltd.'s wholly owned subsidiary as its proposed joint venture partner to advance the La Demajagua gold project in the country, according to an Oct. 15 release.

PanTerra's involvement is subject to the approval of Cuba's Committee for Foreign Investment, and GeoMinera said the drafting of the agreement and approval process could take up to six months.

The project's first stage covers an open pit operation for seven years, followed by an underground operation for about 10 years.

A preliminary economic assessment completed by PanTerra for the initial stage has indicated the project's technical and commercial viability.

The company now plans to carry out a preliminary feasibility study and will work to raise up to A$2.2 million via a 2-for-3 rights issue to fund its costs. The offering will include the issuance of up to 86,574,897 shares at 2.5 cents apiece.