Wesgold Minerals Inc announced that it has completed its acquisition of an initial 11% interest in the Cordoba porphyry copper and gold property in Colombia from Minatura International LLC. The purchase price of USD 4.03 million was paid by cash payments totaling USD 2.03 million to Minatura and the forgiveness of the USD 2.0 million loan provided to Minatura in July 2011. In addition, Minatura has been issued warrants to purchase up to 5.0 million shares of Wesgold.
Wesgold now has the option to acquire an additional 40% interest in the Cordoba Property by expending USD 15.0 million on exploration of the Property and paying to Minatura an additional USD 2.0 million within 2.5 years. USD 5.0 million of the exploration expenditures is a firm commitment. The warrants issued to Minatura are only exercisable once the Company has incurred the USD 5.0 million expenditure.
If Wesgold acquires the full 51% interest, Minatura will have a one-time right to sell its remaining 49% interest in the Cordoba Property to the Company in consideration for shares in the Company. The issuance of these shares would be subject to approval by Wesgold's shareholders.
The Cordoba Property consists of four granted mining concession contracts, one pending contract and five applications for a total of 25,790 hectares located in the Municipality of Puerto Libertador, in the Department of Cordoba, about 200 km north of Medellin, Colombia. The Property covers under explored marine volcano sedimentary rocks and felsic to intermediate intrusives with multiple artisanal gold miners extracting gold from the broad based stockwork zones within the Property.
Mr Simon Ridgway chairman of Wesgold said that "Following several months of legal and technical due diligence, Wesgold has forged ahead with the acquisition of an interest in this large and exciting property package. Due diligence sampling has confirmed the potential for the Cordoba Property to host world class porphyry style copper and gold deposits. We are now in the process of assembling the technical team to realize that potential."
Source - Wesgold Minerals
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