Orosur Mining Inc – Colombia update
· Agnico Eagle to join Newmont in Anzá exploration effort.
· Approximately US$0.7m in funding expected initially.
· Preparations for fieldwork underway.
London, September 30th, 2020. Orosur Mining Inc. (“Orosur” or the “Company”) (TSX/AIM: OMI) , announces that it has been informed by Newmont Corporation (“Newmont”) (NYSE: NEM, TSX: NGT), that it has entered into a Joint Venture Agreement (“Joint Venture”) with Agnico Eagle Mines Limited (“Agnico”) (NYSE: AEM, TSX: AEM) whereby the two companies will jointly assume and advance Newmont’s prior rights and obligations with respect to the Anzá Project in Colombia on a 50-50 basis, with Agnico as operator of the Joint Venture.
Orosur’s Anzá Project is subject to an Exploration Agreement with Venture Option dated September 7th, 2018, as announced on September 10th, 2018, (the “Agreement”) between Orosur’s 100% subsidiary Minera Anzá S.A (“Minera Anzá”) and Newmont Colombia SAS (“Newmont Colombia”), a subsidiary of Newmont. Orosur’s position with respect to the Anzá project, and all terms and conditions of the Agreement remain unchanged.
Newmont Colombia will become the Joint Venture vehicle between Newmont and Agnico and its name will change to Minera Monte Águila SAS (” Monte Águila”).
Monte Águila assumes all rights and obligations with respect to the Anzá project that were previously held by Newmont Colombia, with Minera Anzá remaining operator of the Anzá project and conducting exploration work on behalf of Monte Águila, until such time as Monte Águila assumes operatorship at its discretion .
Exploration funding to commence
The Company has been informed by Monte Águila that initial funding of approximately US$0.7m to restart the exploration program will be provided to Minera Anzá in several days.
This funding is to be directed solely to fund exploration on the Anzá Project for the 12-month period starting September 7th, 2020 and is the first contribution of the required $4m of expenditure for this 12-month period per the terms of the Agreement.
This funding is not related to the previously announced payment in lieu for the shortfall of qualifying expenditure for the previous 12-month period ended September 6th, 2020. The payment in lieu, which amounts to US$582,170, is payable no later than November 6th, 2020.
Pending Commencement of Exploration at Anzá
In anticipation of receipt of exploration funds, Minera Anzá is well advanced in refurbishing its field camp at Anzá in readiness for the commencement of field activities as soon as possible given the limitations currently imposed by the Covid-19 pandemic.
Future announcements will detail work plans as they are developed, but these are likely to include re-logging of core, geophysical surveys, geochemical surveys, and extensive drilling campaigns.
Agnico is a senior Canadian gold mining company that has produced precious metals since 1957. Its operating mines are located in Canada, Finland and Mexico, with exploration and development activities in each of these countries as well as in the United States and Sweden.
Orosur CEO Brad George commented:
“We warmly welcome Agnico to Anzá. To now have two of the world’s top 10 gold miners (combined production of over 7.5 million oz per year) investing in our project is testament to its potential and we look forward to an eventful year.”
About Orosur Mining Inc.
Orosur Mining Inc. (TSX: OMI; AIM: OMI) is a precious metals developer and explorer focused on identifying and advancing gold projects in South America. The Company operates in Colombia and Uruguay.
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