AngloGold Ashanti Collaborates on Three Major Gold Projects
Mining News | 2021-09-06 13:02:37
Also, the company will have an option to raise its interest in the projects to 80%.
By Paul Ploumis
SEATTLE (Scrap Monster): AngloGold Ashanti entered into a non-binding letter of intent (LOI) with Latin Metals Inc. with regards to three of its gold exploration projects in northwestern Argentina. The collaboration is for Latin Metals’ Organullo, Ana Maria, and Trigal gold projects located in Salta Province.
The non-binding agreement allows the parties to enter into a 90-days negotiation period. If willing, the two parties could enter into a definitive agreement, which in turn will provide the option for AngloGold Ashanti to acquire interest in the gold projects. As per the LOI, Latin Metals would retain a significant minority position in the projects and will have an opportunity to collaborate with AngloGold in a future joint venture.
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The execution of the definitive agreement would grant AngloGold an option to earn an initial 75% interest in the projects, subject to aggregate cash payments of $2.55 million to Latin Metals and aggregate exploration expenditure spending of $10 million within five years of the execution and delivery of the definitive agreement. Also, the company will have an option to raise its interest in the projects to 80%.
Keith Henderson, President and CEO, Latin Metals noted that securing joint venture partners is a key part of the company’s prospect generator operating model.
