US-based gold producer Newmont Mining has signed an earn-in agreement to acquire up to 70% in Miranda Gold’s Lyra project in Colombia.
Under the terms of the agreement, Newmont will initially invest $600,000 over 18 months or less towards a prospecting programme on Lyra.
Subject to the conversion of all applications to concession contracts, Newmont will decide whether it wants to earn into the project.
Located in the Department of Antioquia, 120km north-west of Medellín, the Lyra project comprises 14 concession contract applications totalling 54,895ha.
The project area covers more than 25km of the Tonusco Fault that extends south from the Buriticá vein system and serves as a feeder to this system.
Based on data released by Instituto Colombiano de Geología y Minería, 50 of 61 of the samples on Lyra are non-detectable to 0.3g Au/t, with 11 samples showing more than 0.3g Au/t.
Miranda Gold CEO Joseph Hebert said: “Miranda is pleased to partner with Newmont in conducting prospecting, and once concession contracts are granted, exploration, on the Lyra Project.
“Newmont is focused on leading in social and environmental responsibility and brings their proprietary technologies to explore the Lyra project.
“Miranda believes Lyra covers an extension of the Buriticá District and a substantial trend for Miranda and Newmont to explore.”
If Newmont elects to earn into the project, it will acquire a 51% interest in the project in exchange for a $3m investment over the subsequent four years.
Newmont and Miranda will subsequently form a joint venture company in which they will own 51% and 49%, respectively.
Newmont will also have the right to acquire a further 19% interest in the project by funding an additional $7m towards project expenses during the subsequent four years.
As well as Lyra, Miranda owns Kuntur and Oribella projects in the Middle Cauca Belt between the Buriticá and Nuevo Chaquiro gold and gold-copper deposits.