Photo by: Bloomberg
TORONTO (miningweekly.com) – Aim- and TSX-listed precious metals producer Orosur Mining on Monday announced that it would buy junior explorer Waymar Resources in a deal that would, in Orosur’s words, create a “premier South American gold exploration, development and production company”.
Orosur, which operates the San Gregorio gold mine, in Uruguay, would issue 18.5-million shares to Waymar shareholders, giving them a 19.1% interest in Orosur.
Waymar’s flagship asset is the Anzá gold project, in Colombia, where a massive sulphide lens was discovered in the mid-2000s at an operating gypsum mine.
In 2010, Waymar consolidated the land package (currently 231 km2) to cover district potential of base metals and gold deposits.
Since the start of April 2011, Waymar had conducted 17 408 m of drilling, resulting in geologists believing that they had discovered a new 200-m-wide and 2.5-km-long gold/silver/zinc/copper deposit, which is still open on strike and at depth.
The drilling had also revealed a 15 m section at 40 g/t of gold and 41 m of 14 g/t.
“The Anzá gold exploration project is an attractive high-grade asset with significant upside which, set alongside our San Gregorio mine and Pantanillo and Anillo projects, is a major step towards the creation of a strong and diversified gold company with a well balanced mix of existing production, exciting exploration and advanced development projects in South America,” Orosur CEO Ignacio Salazar said.
“I am delighted that, with this transaction, Orosur is not only acquiring an attractive asset but also adding the business and geological expertise of the Waymar team to its board and management. This is in line with our objective to build the company through expert local knowledge. As ever, we remain committed to enhancing shareholder value,” Salazar said.