Orosur share price spikes on Colombia update
Dual-listed Orosur Mining’s share price surged nearly 33% on London’s Aim on Thursday morning, after the company announced that gold major Newmont Goldcorp would maintain its earn-in rights over the Anzá project, in Colombia.
During the first year of the exploration agreement, which concluded on September 7, 2019, Newmont funded exploration costs totalling $310 000 to Minera Anzá, Orosur’s Colombian subsidiary.
In accordance with the agreement, Newmont has made a further cash payment of $690 000 to Minera Anzá to cover its outstanding commitments and to maintain its Phase 1 earn-in rights.
In terms of the three-phase earn-in agreement, Newmont could earn up to a 75% ownership of Anza by spending $30-million in qualifying expenditures over 12 years, completing a National Instrument 43-101-compliant feasibility study and making $4-million in cash payments.
Upon Newmont completing the Phase 3 earn-in, Orosur may elect for Newmont to solely fund all expenditures until commercial production starts at Anzá. Should the company pursue this option, Newmont’s ownership will increase to 80% in the Anzá project.
Orosur’s stock rose to an intraday high of 3.78p apiece, before settling at 3.20p a piece by 12:00 GMT.
The company is also listed on the Toronto exchange.
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