Newmont can't get enough of Colombia, buys 19.9% of Orosur

World's second largest gold producer Newmont Mining (NYSE:NEM) has acquired 19.9% of Canadian gold junior Orosur Mining (TSX, AIM:OMI), which recently closed operations in Uruguay and Chile to focus on Colombia.

Through a placement worth $2 million, Newmont has acquired 29.2 million commons shares at a price of C9.1c (6.9 cents) each. The exploration and option agreement includes a three-phase earn-in structure that allows Newmont to earn up to a 75% ownership interest in Orosur's Anz?? project, located in Colombia's Department of Antioquia.

To secure a majority stake in the project, however, the US miner would have to spend $30-million over 12 years, complet a National Instrument 43-101-compliant feasibility study and make $4 million in cash payments, Orosur said in a statement.

The Anz?? project is in the Mid-Cauca belt, 50km west of the city of Medelli??n and 50km south of the Buritica?? high- grade gold deposit, as well as other major projects. (Image courtesy of Orosur Mining.)

Once Newmont completes the last phase, Orosur may elect it to fund all expenditures until commercial production starts at Anz??. Should the company pursue this option, Newmont's ownership in the project will increase to 80%.

Orosur's London-listed shares responded positively to the news, trading 300% higher to 7.28p on Monday morning and jumped 160% in Toronto to 9 Canadian cents by 9:30 am ET.

The news less than two weeks after the Greenwood Village, Colorado-based gold giant signed an option agreement with another Canadian junior present in Colombia - Miranda Gold (TSX-V:MAD). The deal could give Newmont a 51% stake in the Lyra gold project, also located in in the Department of Antioquia, 120km northwest of Medell?-n.

And in May last year, Newmont bought about 20% of yet another Canadian company, Continental Gold Inc (TSX:CNL), to secure access to the Buritic?? project, located in the same area.