AngloGold Ashanti takes significant stake in LCL in exchange for JV interest
In a development that underlines the strategic significance of Los Cerros Limited’s (ASX:LCL) Quinchia Project in Colombia, global mining group AngloGold Ashanti has entered into a binding terms sheet, exchanging its Chuscal joint-venture interest for Los Cerros securities, effectively making it a 4.3% shareholder in the group.
Under the terms of the agreement, AngloGold Ashanti will have the right to increase its interest to 10%.
Los Cerros stands to benefit from agreed access to the group’s regional geophysics data, as well as unlimited use of its IP equipment for the next 18 months.
Managing director of Los Cerros Jason Stirbinskis pointed to AngloGold’s extensive experience in the region saying, “We welcome AGA to the share registry.
“They have proved to be supportive JV partners at Chuscal and we look forward to their ongoing support as a shareholder of Los Cerros.
‘’In addition to their vast knowledge of Colombian geology and gold discoveries, they have direct experience in the Quinchia region and some of our highest priority targets in the extensive Andes portfolio were also once AGA assets”.
Los Cerros to gain 100% ownership of Chuscal
The Agreement will take Los Cerros’ ownership of Chuscal to 100% and results in the company holding 100% of the entire Quinchia Project of which Chuscal is a part.
The Quinchia Gold Project hosts four discoveries (Miraflores, Tesorito, Dosquebradas and Chuscal) within a 3 kilometre radius of the proposed Miraflores plant site with potential for more discoveries.
As indicated below, Chuscal is in a central position just to the south of the proposed Miraflores plant site.
The recently completed maiden drilling program at Chuscal has sharpened the company’s belief that Chuscal is a critical element in the regional scale Quinchia Gold Project which already hosts three other discoveries in Miraflores, Tesorito and Dosquebradas, all within a 3 kilometre radius.
Consequently, management holds the view that controlling Chuscal and having discretion over how the larger opportunity presented is explored and developed is of substantial strategic importance and benefit.
In a similar vein, AngloGold Ashanti now has exposure to the larger Quinchia Project and the enormous greenfield potential of the Andes Project, 70 kilometres to the north.
All of these projects are located within the highly prospective mid-Cauca porphyry belt that hosts many multi-million ounce discoveries, some owned and discovered by AngloGold such as the Nuevo Chaquiro and La Colosa projects which have a combined gold equivalent resource of 55 million ounces.
From a broader perspective, AngloGold Ashanti has notched up more than 100 million ounces of gold resource discoveries, making it a very attractive shareholder to have on the register.