Orosur ends agreement with Chile's state mining company

Gold producer Orosur Mining has terminated its option agreement with Chile's national mining company over its Anillo gold exploration project as part of an effort to focus its resources on core properties in Colombia and Uruguay.

Orosur's agreement with Nacional del Cobre de Chile regarding the Anillo project, originally optioned from the state agency back in 2010, granted the AIM-quoted firm the right to acquire a 65% interest in the project under the provision that it spent $4m over a four year period and completed a bankable feasibility study at the asset.

However, in view of the lack of positive exploration results from its first drilling phase, as well as a funding agreement with Asset Chile Exploración Minera Fondo de Inversión Privado that failed to materialise, Orosur decided not to proceed with the option agreement.

Orosur noted that there were no penalties involved with the termination.

As of 0900 BST, Orosur shares had picked up 5.65% to 4.49p.