Orosur’s Board has confirmed much-anticipated news that its Colombian Joint Venture (‘JV’) partner, Minera Monte Águila SAS (‘Monte Águila’), has elected to exercise its right to assume operatorship of the Anzá Project (‘the Project’) in Colombia.
As such, Monte Águila will now steer the Project into its fourth year of Phase 1, during which time a further minimum of US$4 million is required to be spent.
Although investors will see little obvious external change, the decision by Orosur’s major exploration and production partners to assume control of onsite day-to-day activities, including responsibility for collation and submission of data generated, reflects their clear confidence both in the scale of the Project’s exploration potential and confidence in its longer-term economic viability.
The JV’s original Exploration and Option Agreement includes a three-phase structure that enables Monte Águila’ to earn up to a 75% participation, whereafter Orosur shareholders will be left to enjoy free carry on the balance.
With a strong balance sheet providing opportunity to hold both its position in the JV along with its newly liberated management team being freed-up to pursue other ventures, such as progressing the non-binding Letter of Intent (‘LOI’) agreed on 7 July 2021 with Canadian listed Meridian Mining SE (TSX-V: MNO) to finalise a new Joint Venture on its high potential Ariquemes Tin project in Brazil, TPI considers Orosur shareholders could have several opportunities to be well rewarded going forward.
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