JOHANNESBURG (miningweekly.com) – South African exploration company PanEx Resources has signed an agreement to earn into the Portuguese subsidiary of Scotgold Resources, under which it will spend €6.6-million in several phases.

The Portuguese subsidiary owns the Pomar exploration licence, covering 264 km² and includes the historical antimony mines of das Gatas, Pomar and Casalinho, in additional to numerous small-scale antimony trials and occurrences. The small high-grade mines were active during the 1940s producing antimony concentrate with associated gold.

In terms of the earn-in agreement, announced on Monday, the initial development phase will entail expenditure of up to €100 000, followed by the first development phase, under which PanEx has to spend at least €1.5-million within 18 months, to earn a 50% shareholding in Scotgold Portugal.

Should PanEx elect to start the second project development phase, it has to spend at least €5-million within two years. At that point, PanEx will earn a further 30% in Scotgold Portugal, taking its total shareholding to 80%.

"We are delighted to conclude this agreement with PanEx, who, using their strong technical and financial resources, will enable the accelerated development of the highly prospective Pomar licence. In particular it allows us to retain an interest in the project as it advances and potentially continue to participate beyond the feasibility study stage," commented Scotgold CEO Richard Gray.

Scotgold’s focus is its Connonish gold mine, in Scotland.

PanEx is an unlisted exploration company based in Johannesburg.  According to the company’s website, its team includes, among others, Anton Esterhuizen, who has been responsible for the discovery of a number of gold and other deposits in Southern Africa, as well as former Harmony Gold CEO Bernard Swanepoel, who has chaired several mining companies.