Orosur Mining up 39% on Newmont option news
Orosur Mining Inc. [OMI-TSX, AIM] shares rallied Thursday September 3 after the company said it has been informed that Newmont Goldcorp Corp. [NGT-TSX; NEM-NYSE] will continue to exercise its rights under an option agreement covering the Anza Project in Colombia.
Orosur said Newmont has now paid the fourth and final cash payment of US$500,000 required under Phase I of the earn-in arrangement to retain its option and to continue into the third year of Phase I of the agreement. This year, Newmont is required to make US$4 million in qualifying expenditures at Anza.
Orosur advanced on the news, rising 38.89% or $0.04 to 13 cents on volume of 1.15 million. The shares were previously trading in a 52-week range of 11 cents and $0.03.
The Anza project is located in Antioquia, Colombia and consists of 207 km2 in exploitation and exploration concession applications, covering more than 20 km of the prospective Tonusco Fault. The project is located 50 km west of Medellin.
In September, 2018, Orosur announced that it had closed a non-brokered private placement of US$2 million with Newmont Goldcorp and signed a deal that gave Newmont an option on the Anza Project.
The option agreement included a three-phase earn-in for Newmont to earn up to a 75% interest in the Anaz Project by spending $30 million over 12 years. Newmont is also required to complete a NI 43-101 compliant feasibility study and make cash payments to Orosur of US$4.0 million over phases one and two.
Under the private placement, Newmont bought 29.2 million shares of Orosur at $0.091 each for US$2.0 million, leaving Newmont with a 19.9% stake in the junior and the right to maintain its interest by participating in future equity offerings.
Drilling in the APTA area defined multiple zones of high-grade gold mineralization covering a strike length of approximately 1.5 km to a depth of over 275 metres, with mineralization remaining open in all directions.