Newmont, Agnico Eagle team up in Colombia

Newmont Mining (NYSE: NEM) (TSX: NGT), the world’s largest gold producer, and Canada’s Agnico Eagle (TSX, NYSE: AEM) have formed a 50-50 joint venture in Colombia to explore the Mid-Cauca belt, in the country’s northwest.

The partners will focus on the Anzá gold project, in which Newmont has earn-in rights, as well as other prospective gold targets of district-scale potential in Colombia.

Newmont reached a three-phase deal with Orosur Mining (TSX, AIM:OMI) in 2018, which granted it the right to earn up to a 75% stake in the Canadian junior’s Anzá project.

The asset, comprising contracts and applications totalling 200 km², is located 50 km west of Medellin and 60 km south from Zijin Mining’s Buritica operation.  

“Agnico Eagle has been actively looking at Colombia for some time, and this low-cost entry is consistent with our exploration strategy,” senior VP exploration Guy Gosselin, said in a separate statement.

The executive added the partnership was also in line with the company’s existing investment in Royal Road Minerals (TSX-V: RYR), in which it has a 19.9% stake.

Agnico will sole fund the joint venture until it equals Newmont’s previous investment in the Anza project of about $2.9 million. After that, the parties will continue funding exploration activities on a 50-50 basis.

Newmont and Agnico Eagle Mines have announced a joint venture to explore the Anzá project and other prospective “district-scale” gold targets in Colombia.

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