The Gramalote gold project is located on the eastern flank of the Cordillera Central near the Providencia and San Jose del Nus towns in the municipality of San Roque
AngloGold Ashanti, B2Gold are jointly developing the Gramalote gold project in Colombia (Credit: Pixabay)
AngloGold Ashanti has reached an agreement with B2Gold under which the latter will fund an investment and exploration programme at the Gramalote gold project in Colombia for an increased stake.
The two companies are currently joint venture partners in the gold development project located in the north-west of the Antioquia Department.
Currently, B2Gold holds a stake of 48.3%, while AngloGold Ashanti owns the remaining 51.7% stake in the Gramalote project.
Under the agreement, B2Gold will fund $13.9m (£11.2m) for the investment and exploration programme scheduled for 2020 to raise its stake in the Colombian gold project to 50%. The Canadian gold mining company will also assume management of the project from AngloGold Ashanti starting from next year through the transaction.
AngloGold Ashanti CEO Kelvin Dushnisky said: “This aligns closely to our strategy of sharpening the focus of our capital and management resources on the suite of options available to us.
“B2Gold has proven itself a strong, experienced player in exploration, feasibility studies and project execution, which makes it an excellent partner for us.”
Feasibility study on Gramalote gold project
B2Gold and AngloGold Ashanti have also agreed to allocate up to $40m (£32.23m) on the feasibility study on the Gramalote gold project for the remainder of this year and through the end of 2020. The budget will cover infill drilling of 42,500m and 7,645m of geotechnical drilling for site infrastructure.
Currently, B2Gold expects to wrap up all the drilling at the Colombian gold project by the end of May 2020.
B2Gold chief executive Clive Johnson said: “We believe the Gramalote project has the potential to become a low-cost open pit gold mine.
“The project has several key infrastructure advantages including reliable water supply, close proximity to key infrastructure and a technically capable workforce in country.”
The Gramalote gold project is located on the eastern flank of the Cordillera Central near the Providencia and San Jose del Nus towns in the San Roque municipality.
Subject to definitive documentation, the agreement is expected to be completed by the year end.