Samco Gold signs participation agreement with Ricardo Auriemma

13 January 2014 (Last Updated January 13th, 2014 18:30)

Samco Gold has signed a participation agreement with Ricardo Auriemma to support the development of its El Dorado Monserrat (EDM) and Corina projects.

Samco Gold has signed a participation agreement with Ricardo Auriemma to support the development of its El Dorado Monserrat (EDM) and Corina projects.

Ricardo Auriemma is currently awaiting the decision of the Argentinean court on a breach of agreement case with Grantor and Northern Orion Resources (GNOR).

Under the participation deal, Samco Gold will be able to participate in the process without a regional alliance agreement with GNOR, and will have the right to a share of Auriemma's financial award from the case.

Samco Gold would use the funds to support further development of its gold and silver assets in Argentina, including the core EDM and Corina properties, without any equity dilution to shareholders.

Samco Gold executive chairman and CEO Charles Koppel said the company is delighted to have secured the opportunity.

"At a time when mining companies are finding it difficult to raise finance for exploration, this transaction is expected to provide the Company with a substantial capital injection, with potential for a future revenue stream," Koppel said.

"This would allow us to accelerate the development of our very exciting portfolio, notably our two core projects at El Dorado Monserrat and Corina."

The court has granted Ricardo Auriemma 15% of the proceeds received by GNOR from its interest in the Bajo de la Alumbrera mine.

Samco Gold's board's special committee has approved the participation agreement, which is subject to various conditions, including the approval of independent shareholders holding over 50% of the issued shares of the company.

Nri