UPDATE - Orosur signs off Anillo option agreement

-- adds broker comment, share price -- Orosur Mining (LON:ORM) has signed off the farm-out of up to 60% stake of its stake in the Anillo project in Northern Chile. Asset Chile Exploración has completed due diligence and will take a 40% stake in the gold and silver project if it spends US$3.475mln in three stages of exploration. Phases one and two will involve 9,100m of drilling, for which Orosur will have to put up US$300,000. Orosur took 65% of the licence from a similar–in-style exploration farm-out with previous owner Codelco. Ignacio Salazar, Orosur's chief executive, said: “We are delighted to have entered into this Agreement with Asset Chile to option a minority share in our interest in the Anillo project. This transaction is non-dilutive to Orosur shareholders and enables us to progress a solid exploration program at Anillo for the next three years with limited capital requirements by the company. "We are looking forward to working with Asset Chile as partners in our exploration efforts at Anillo and to the results of the program ahead. We appreciate the support of Codelco to the transaction.” Cantor Fitzgerald said it was a good deal for Orosur, as it retains a significant interest in the project without major financial commitment, and allows it to concentrate on its higher priority assets in Uruguay. Buy with a 32p target price. Shares were 8.97p.