London-listed Anglo Asian Mining is making its first foray outside Azerbaijan, with a proposed joint venture (JV) with Conroy Gold and Natural Resources in Ireland.
Anglo Asian will acquire, by way of the JV, up to 55% in the Longford Down Massif gold project, in Ireland, in exchange for committing to meet certain expenditures.
The licences cover more than 800 km2 in a major gold district in the north-east of the island of Ireland, known as the Longford Down Massif, containing significant gold targets.
"The proposed joint venture is in keeping with the company's stated strategy and ambitions and will complement the company's existing pipeline of projects in Azerbaijan. It is of sufficient scale to considerably add to the company's operations, but of a size which will not adversely impact the development of our assets in Azerbaijan," said CEO Reza Vaziri.
"Our experience in building and operating mines will combine well with Conroy Gold's exploration skills and local knowledge and together we can drive the project forward. Ireland, like Azerbaijan, has a stable and predictable jurisdiction for mining."
Anglo Asian Mining will acquire an initial 17.5% working interest in the JV by committing to spend €2-million and has an option to increase its working interest to 25% by spending a further €2-million, completing the primary exploration programme.
It has a further option to acquire a total 55% working interest in exchange for committing to meet the expenditures of the secondary expenditure programme in order to advance the Clontibret gold deposit to mine construction ready status and certain further exploration expenditures.
Conroy chairperson Professor Richard Conroy described the agreement as a "very significant step forward" for the company.
The London-listed shares of Conroy surged 87% on Tuesday to a 52-week high of 28p each.