09:28 AM EDT, 03/25/2024 (MT Newswires) -- Orosur Mining Inc. ( OROXF ) , near 52-week lows, earlier on Monday provided an update on the status of the company's flagship Anza Project in Colombia

The project is the subject of an exploration agreement with a venture option with the Colombian company Minera Monte Aguila (MMA). MMA is a 50/50 joint venture between Newmont Corp. and Agnico Eagle Mines Ltd.

MMA is the current operator of the project.

Orosur Mining ( OROXF ) on March 22, 2023, has signed a non-binding letter of intent with MMA. The letter of intent provides for a transaction under which Orosur would buy back MMA's interest in the project, resulting in Orosur having 100% ownership of the project. The proposed consideration set out in the letter of intent is a net smelter return royalty of 1.5% and cash payments of up to US$15 million payable upon meeting certain agreed production thresholds.

The deal is expected to close by the end of April.

The company has initiated the process to reassume ownership and operatorship of the project. If completed, the company expects to recommence drilling operations soon after reassuming operatorship.