"Orinoco Gold Limited (ASX: OGX) (“Orinoco” or “the Company”
is pleased to provide the following update on its potential exploration Joint Venture (“JV”
agreement with AngloGold Ashanti Holdings Plc (“AngloGold”
.
As previously advised (see ASX announcement dated 7th February 2017), Orinoco and AngloGold entered into an agreement to establish a regional exploration joint venture over the Company’s Faina Goldfields Project (“JV tenements”
which encompasses the tenements surrounding the Company’s Cascavel Gold Mine (Figure 1).
Orinoco is pleased to advise that recently held discussions with AngloGold have confirmed the original earn-in agreement terms, with both parties now commencing work on establishing the in-country joint venture entity this quarter.
Under the terms of the JV agreement, AngloGold may earn up to a 70% interest in the JV tenements by spending US$9.5 million in exploration over a three-year period with the right to withdraw at any time. To date, AngloGold has advanced a total of A$3 million to reduce its earn-in requirements (see ASX announcement dated 6th September 2017).
A technical committee, led by AngloGold, will be established upon the formation of the in-country JV entity, with a detailed exploration program for the next 12 months to be outlined shortly thereafter."
This remains some of the worst and most confusing disclosure around an exploration joint venture that I have ever seen on ASX.
The first paragraph refers to it as a "potential exploration Joint Venture ("JV") agreement".
The second paragraph refers to a previous "regional joint venture over the Company's Faina Goldfields Project ("JV tenements"). The same paragraph says the companies have "confirmed the original earn-in agreement terms". Quite curious. The paragraph confirms that they had a previous JV over the Faina tenements. Why confirm the terms of an agreement if an agreement already existed? My recollection was that this agreement remained unbinding and in negotiation as was argued also by many on these threads who were all in favour of going it alone. I will need to check the 7th of February 2017 announcement and subsequent announcements relating to this exploration agreement to understand what is really behind this paragraph.
The third paragraph refers to the "JV agreement" saying Anglo may earn up to a 70% interest in the "JV tenements", no memtion of a "potential" exploration JV agreement in this paragraph or the second paragraph above it.
Why then does the first paragrapgh say "potential exploration Joint Venture ("JV") agreement"???
You have either entered into a binding exploration JV agreement or you haven't, which one is it??
Eshmun
