Orosur Mining Inc on Tuesday said that negotiations of the terms of a definitive binding share purchase agreement regarding the Anza gold project in Colombia have successfully concluded.
Shares in the South America-focused minerals explorer and developer surged 55% to 4.10 pence each on late Tuesday morning in London.
Orosur said it will have full ownership of its flagship Anza gold project in Colombia, which has been granted exploration licences and applications for exploration licences in the Mid-Cauca belt of the country.
Chief Executive Officer Brad George said: ‘We are thrilled to be finally getting Anza back - an exciting project at an exciting time in the precious metals space. In anticipation of successful completion, we had already begun the field planning process, so all is now in place and we are ready to start work.’
If all buyback rights regarding the negotiations are exercised, the cost of buying the project back would be $20 million.
Consideration for the acquisition will be comprised of the grant to each of Newmont and Agnico of a 0.75% net smelter return royalty on all future mineral production and a fixed royalty of $37.5 per ounce of gold or gold equivalent ounce on the first 200,000 ounces of mineral production.
Back in January, Orosur announced it was in negotiations to buy Minera Monte Aguila SAS’s 51% interest in the project. Minera Monte, itself a 50/50 joint venture between Newmont Corp and Agnico Eagles Mine Ltd, was the operator of the Anza gold project. It had earned its interest in the project under an exploration agreement in 2018.
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