Continental surges 33% after securing $134m for Colombia gold mine – by Frik Els ( – May 11, 2017)

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.

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