Shares in Continental Gold Inc (TSE:CNL) surged 33% on Thursday day after world number two gold miner Newmont Mining forked out $109 million for just under 20% of the Toronto-based explorer and its Buriticá project in Colombia.
At the same time private equity firm Red Kite is paying $25 million for a 4.6% stake. Together with a Red Kite credit facility, Continental, now worth $388 million on the TSX, is fully funded to start building at 100%-owned Buriticá later this year.
Denver-based Newmont, which operates South America’s largest gold mine Yanacocha and the Merian mine in Suriname, gets a seat on Continental’s board and the two companies agreed on the formation of joint management technical, exploration, and sustainability committees.
Newmont and Continental will also form a strategic alliance to evaluate opportunities to partner on exploration of Continental’s other properties in Colombia according to the statement.
At a capital outlay of $389 million Buriticá located in Antioquia in northwest Colombia is on track to pour its first gold early 2020.
For the rest of this article, click here: http://www.mining.com/continental-surges-33-securing-134m-colombia-gold-mine/