- An Option and JV agreement for potential deposits (Uruguay).
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Orosur Mining Inc. (TSX-V: OMI, LON: OMI), a gold producer and explorer has an option and joint venture agreement with Gladiator Resources Ltd (ASX: GLA completed).
GLA now has the right to earn up to 80%, at Orosur's iron ore, manganese ore and base metal potential deposits in the "Isla Cristalina" belt in Uruguay.
Orosur CEO David Fowler said: "Gladiator Resources' first due diligence on the Isla Cristalina iron project confirmed the potential for the development of an iron-making operation."
Drilling and feasibility work is expected to begin this month he said.
Orosur will not invest additional funds to the project until the end of the feasibility study. We look forward to the results of the work in the coming years, "said Mr Fowler.
The group has reported the option agreement in January (2010).
In May, it was announced that GLA will exercise the option.
The agreement has now been carried out, and GLA will issue shares with a market value of A $ 100,000 at Orosur.
GLA will earn a 20% interest in the equipment, by the expenditure of $ 1,000,000. This is for work.
GLA can earn an additional 31% by expending a further U.S. $ 4,000,000 (for a share of 51%).
It can earn a further 29% if a feasibility study (to the bank submission) produced on or before 31 December 2015.
Orosur will retain the mineral rights to gold, silver and diamonds within the project area.
Orosur focuses on the identification and development of gold projects in South America. It operates the only producing gold mine in Uruguay, San Gregorio. It has collected a portfolio of quality exploration assets in Uruguay and Chile.
