Xanadu Mines has completed the acquisition of a 90% interest in Vantage LLC, which owns the Oyut Ulaan porphyry copper-gold project in southern Mongolia. This follows shareholder approval being granted at the company’s annual general meeting on November 22.
Oyut Ulaan is in Dornogovi province, about 70km west of the future industrial centre of Sainshand. Xanadu maintained a 25% interest and operatorships of the project throughout 2013.
Xanadu has paid cash consideration of US$600,000 and will issue 5 million Xanadu shares. It will also issue Series A & B performance share options contingent on the recognition of a JORC resource of up to 900,000 tonnes contained copper equivalent.
The 5 million shares will be issued to Aberdeen International, an investment company and merchant bank listed on the Toronto Stock Exchange. Aberdeen has a broad investment mandate in the resources sector with a depth of sector experience and an association with Forbes & Manhattan.
ASX-listed Xanadu will continue its systematic, low-cost exploration program at Oyut Ulaan in 2014. The next phase of exploration will focus on delineating potential shallow high-grade mineralization by exploring along strike from existing intersections and test the many geophysical and geochemical anomalies which remain within the Oyut Ulaan area as there is a strong possibility of discovering additional mineralized porphyry centres.