Origo Partners Invest in Altan Takhi Company
Origo Partners Plc ("Origo") today announced the acquisition of a 30% stake in Altan Takhi Company ("ATC"), for a total cash consideration of US$3 million. ATC owns a 100% interest in the Budag Tolgoi copper-gold prospect ("Budag Tolgoi") situated in the central copper belt of Mongolia. Under the terms of the transaction Origo has also been granted an exclusive option, exercisable prior to April, 2011, to increase its shareholding to 80% for an additional consideration of US$5.5 million.
The Budag Tolgoi prospect covers an area of 55 square kilometres in the western part of the Dundgovi province, situated in the Gobi region of Mongolia, approximately 340 kilometres south west of the capital Ulaanbaatar and 400 kilometres north of the Oyu Tolgoi mining operations. ATC has carried out an extensive exploration programme including geological mapping and prospecting, topographic and geophysical surveys, geochemical sampling, trenching and drilling of 43 diamond holes along an identified fault line. ATC has indentified high grade sedimentary hosted copper and gold mineralisation close to the surface, including one 17 metre interval containing 3.26% copper and one 28 metre interval containing 1.4% copper and is preparing an application for a mining license in the near future.
The investment in Budag Tolgoi marks Origo's sixth investment in companies with assets in Mongolia positioned to supply natural resources to China. Under the terms of the agreement with ATC, US$0.5 million will be provided in the form of a shareholder loan to further the exploration program and conversion to a mining license, while US$2.5 million will be a share purchase from ATC's founding shareholder. Origo's team of international and local geologists will assist ATC in developing its operations and preparing for further international fundraising.
Commenting on today's announcement, Chris Rynning, CEO of Origo said:
"We are very encouraged by the exploration work already undertaken on Budag Tolgoi and believe the prospect shows the potential to become a significant copper-gold mine with a long mine-life.
He continued: "This investment marks Origo's third investment into Mongolian copper-gold prospects and is in-line with our strategy of assembling prime copper assets in prospective areas of Mongolia in order to benefit from growing Chinese demand for natural resources."
Read announcement here
By author: admin - Nov 15, 2010 / Categories: News