Newrange Gold Corp (CVE:NRG) (OTCMKTS:NRGOF) announced Wednesday that it had agreed to sell its Colombian assets to Australia’s Andean Mining Corporation Pty Ltd in a US$1 million deal.
The Vancouver-based company’s Colombian portfolio consists of its wholly owned subsidiary, Corporacion Minera de Colombia, which owns the El Dovio and Anori exploration projects.
Shares of Newrange soared 11.5% on Wednesday morning to sit at C$0.15 in Toronto and were trading at US$0.11 on OTC Markets.
READ: Newrange Gold revitalizing historic Good Hope Mine with encouraging gold results
The junior explorer said in a statement that the sale would allow Newrange to focus on its highly prospective Pamlico project in Nevada, which includes the historic Pamlico group of mines as well as the Good Hope, Gold Bar and Sunset mines nearby.
"This agreement provides near term non-dilutive financing, eliminates the costs of maintaining the Colombian subsidiary and projects, and maintains exposure to the upside in each of these projects through share ownership and retained production royalties,” said Robert Carrington, Newrange’s chairman.
Under the terms of the transaction, Andean will pay Newrange US$1 million in staged payments within nine months from the closing date, together with certain other considerations that remain undisclosed.
The company will maintain its ownership of the Yarumalito gold porphyry project in Colombia for the time being, it said in a statement.
Encouraging results from Pamlico
At Pamlico, Newrange is continuing with the underground surveying, mapping and sampling program on the more than 8,000 metres of historic mine workings in the Pamlico Ridge area.
Recent highlights from the sampling program at Good Hope included 13.9 g/t gold and 71.2 g/t silver over 40 metres in the 5690 level of the mine. Results from the same 40 metres, including sampling from the adjacent footwall and hangingwall, averaged 5 g/t gold and 42.2 g/t silver.
Only about one thirtieth of the area covered by the old mines has been drill-tested and the information will be an important part of planning upcoming drilling programs, according to Newrange.
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