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Continental surges 33% after securing $134m for Colombia gold mine

Shares in Continental Gold Inc (TSE:CNL) surged 33% on Thursday day after world number two gold miner Newmont Mining forked out $109 million for just under 20% of the Toronto-based explorer and its Buriticá project in Colombia.

At the same time private equity firm Red Kite is paying $25 million for a 4.6% stake. Together with a Red Kite credit facility, Continental, now worth $388 million on the TSX, is fully funded to start building at 100%-owned Buriticá later this year.

Denver-based Newmont, which operates South America's largest gold mine Yanacocha and the Merian mine in Suriname, gets a seat on Continental's board and the two companies agreed on the formation of joint management technical, exploration, and sustainability committees. Newmont and Continental will also form a strategic alliance to evaluate opportunities to partner on exploration of Continental’s other properties in Colombia according to the statement.

At a capital outlay of $389 million Buriticá located in Antioquia in northwest Colombia is on track to pour its first gold early 2020. The underground mine is expected to produce 253,000 ounces of gold (282koz during the first five years) and 466,000 ounces of silver annually over its 14-year mine life.

To continue reading please click link http://www.mining.com/continental-surges-33-securing-134m-colombia-gold-mine/

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MARKET SUMMARY

INDICES

Name Last Change
DOW 23358.20 0.43%
S&P 500 2578.85 0.26%
NASDAQ 6782.79 0.15%
TSX 15998.57 0.40%
TSX-V 799.35 0.00%

Resource Commodities

Name Last Change
Gold 1294.20 1.20%
Silver 17.31 1.33%
Copper 3.06 0.62%
Platinum 952.00 1.56%
Oil 56.55 2.49%
Natural Gas 3.10 1.42%
Uranium 24.25 N/A
Zinc 1.45 0.00%

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