South America-focused Orosur said on Monday it had received a cash payment of $500 000 from gold major Newmont in connection with maintaining its earn-in rights in the Anzá project in Colombia.
The exploration agreement between the parties comprises a three-phase earn-in structure, allowing Newmont to earn up to a 75% ownership interest in the Anzá project by making semi-annual cash payments to Orosur equalling $4-million over phases 1 and 2, spending a minimum of $30-million in qualifying expenditures over 12 years, and also completing National Instrument 43-101-compliant prefeasibility and feasibility studies through the end of Phase 3.
In Phase 1, Newmont may earn a 51% ownership interest in Anzá by spending $10-million in qualifying expenditures over four years and making cash payments to Orosur equalling a total of $2-million. In accordance with the Phase 1 earn-in right, Newmont has made three of four cash payments to Orosur and the fourth payment of $500 000 is expected in September.