AngloGold Ashanti invests $5.9M in Orinoco

Company News

by David Chau

Global gold miner AngloGold Ashanti (ASX:AGG) has entered a strategic partnership with emerging gold producer Orinoco Gold Ltd (ASX:OGX).

Under this deal, AngloGold will make a AU$5.9 million cornerstone investment in return for a 15% stake in Orinico.

AngloGold can also earn up to a 70% interest in Orinico’s Faina Goldfields Project in Brazil – through staged exploration expenditure of US$9.5 million over a three-year period.

Another term of this deal is that AngloGold will have the right to negotiate an agreement to earn up to a 50% stake in the Cavascel Gold Mine for a period of nine months.

AngloGold Ashanti posted a net profit of $82.1 million at 30 June 2016.

David Chau

Finance News Network
David joined FNN in April 2016. In addition to presenting the Market Outlook and latest business news stories, David interviews senior economists and CEOs of ASX-listed companies. Prior to working for FNN, David was a litigation lawyer.