Shares in Orosur Mining (OMI) were up 280% this morning after the company completed a private placing to raise $2m with gold giant Newmont Mining Corporation.
The deal also includes an exploration agreement with the S&P 500-listed company’s Colombian subsidiary Newmont Colombia S.A.S. over the Anza property.
The Anza project is located in Antioquia, Colombia, and comprises total land of 207.5 km, covering more than a 20 km segment of the prospective Tonusco Fault.
The exploration agreement includes a three-phase earn-in structure allowing Newmont to earn up to a 75% ownership interest in the project by spending a minimum of $30m in qualifying expenditures over twelve years.
Newmont would also complete a feasibility study and make cash payments to Orosur equaling a total of $4m over the mine’s first two phases.
Orosur CEO Ignacio Salazar said: “After a lengthy process of evaluating potential partnerships with a number of companies, we are very pleased to have entered into this significant transaction with an industry leader like Newmont, known for its exploration track record, proprietary technology, financial strength, and its focus on leading in safety, social and environmental responsibility.
“Completing the Private Placement and entering into the Exploration and Option Agreement accomplishes a number of key strategic elements for Orosur. These include strengthening the Company’s cash position and providing a well-structured deal to advance the Anza Project.
“We look forward to re-commencing exploration efforts at Anza shortly and are excited to add the breadth of Newmont’s exploration pedigree and backing to our efforts.”
As for the placing, Newmont purchased 29,213,186 common shares at a price of £0.054 per share for aggregate proceeds of $2.0m.
Following the private placement, Newmont Mining Corporation will own approximately 19.9% of Orosur Mining's shares.
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