Orosur Mining signs exploration deal with US giant Newmont

Orosur Mining wrapped up its non-brokered private placement of $2m with Newmont Mining on Monday, the same day it inked an exploration agreement with the American gold giant's wholly-owned subsidiary for the Anzá exploration project in Colombia.

The AIM-listed firm's exploration agreement for Anza, located across 207.5 square kilometres in Antioquia, included a three-phase earn-in structure allowing Newmont to earn up to a 75% ownership interest in the project by spending a minimum of $30m in qualifying expenditures over twelve years.

Newmont will undertake a feasibility study of the asset and make cash payments to Orosur equaling a total of $4m over the project's first and second phases.

The NYSE-listed firm has also been granted the option to form a joint venture with Orosur following completion of the first phase.

As far as the share placement was concerned, Newmont snapped up roughly 29.2m shares in the South America-focused gold producer at a price of CAD $0.091 per share, for aggregate proceeds of $2.0m.

As of 0835 BST, Orosur shares had soared 163.89% to 4.75p.