Copper and gold explorer Sierra Mining Ltd
(ASX:SRM) says it will partner with CGA Mining Ltd
(ASX:CGX) to accelerate its exploration programs in the Philippines as well as pursue new opportunities.
CGA has developed the largest gold mine in the Philippines, the Masbate Gold Project.
Sierra says that CGA will provide its projects with strategic, commercial and technical assistance, and both companies will work together to identify and secure other exploration and development opportunities in the Philippines.
Sierra has also announced that it is undertaking a placement to raise $6 million that will be supported by CGA through participating in the issue.
In return, Sierra has granted CGA a right of right of refusal in the event Sierra chooses to dispose of an interest in any of its projects, as well as a pro-rata right to participate in future capital raising.
Managing Director of CGA Michael Carrick says the alliance with Sierra is an opportunity for CGA to participate in untapped exploration potential in the Philippines.
Sierra Mining posted a loss in the year to 30 June 2010.
