- Written by ASIA Miner News
Origo Partners has acquired a 30% stake in Altan Takhi Company (ATC), for a total cash consideration of US$3 million. ATC owns the Budag Tolgoi copper-gold prospect in the central copper belt of Mongolia.
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 55sqkm in the western part of the Dundgovi province, in the Gobi region, about 340km southwest of Ulaanbaatar and 400km north of the Oyu Tolgoi mining operations. ATC has carried out an extensive exploration program including geological mapping and prospecting, topographic and geophysical surveys, geochemical sampling, trenching and drilling of 43 diamond holes along an identified fault line.
It has identified high grade sedimentary hosted copper and gold mineralization 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 licence 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$500,000 will be provided in the form of a shareholder loan to further the exploration program and conversion to a mining licence, 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.
Origo's CEO Chris Rynning says, "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."