Conroy Gold shares surge on proposed Anglo Asian joint venture

Ireland and Finland-focussed Conroy Gold and Natural Resources has entered into non-binding heads of terms over a proposed joint venture with Anglo Asian Mining, it announced on Tuesday.

The AIM-traded firm said the venture’s goal was the development of a gold mine, and further exploration and development of a series of gold targets along the 65 kilometre district-scale gold trend, that it discovered in the Longford-Down Massif in Ireland.

It described Anglo Asian Mining as an AIM-quoted gold, copper and silver producer in central Asia, with a portfolio of production and exploration assets in Azerbaijan and a track record as a builder of mines.

Under the heads of terms and, subject to the final joint venture agreement being put in place, in order to earn its full proposed interest of 55% in the venture, Anglo Asian would commit to meet certain expenditures required to bring the gold deposit at Clontibret, County Monaghan, to fully-permitted mine status.

It would also need to meet certain expenditure commitments on Conroy’s other prospecting licences in the Longford-Down gold trend over the next three years.

The company said its eight gold exploration licences in Finland, and one other licence it owned in Ireland, were not subject to the proposed joint venture, and would remain 100% owned by Conroy.

“The heads of terms agreement with Anglo Asian is a very significant step forward for Conroy Gold and its shareholders as we move to develop a gold mine at Clontibret and to further explore the district scale gold trend we have discovered in the Longford-Down Massif,” said chairman Richard Conroy.

“Anglo Asian is an established gold producing company generating significant positive cashflow and is debt free.

“I am particularly encouraged by its expressed intention to proceed with the project in the immediate term.”

At 0911 BST, shares in Conroy Gold and Natural Resources were up 60% at 24p, while Anglo Asian Mining rose 2.71% to 136.6p.