Anglo Asian Mining PLC (LON:AAZ) and Conroy Gold and Natural Resources PLC (LON:CGNR) have formed a joint venture for the further development of the Longford Down Massif gold project in Ireland, hitherto held and worked solely by Conroy.
Anglo Asian is to acquire up to a 55% interest in the project by investing in stages. The initial 17.5% will be earned by Anglo Asian investing €2mln in further exploration.
WATCH: Anglo Asian Mining team outline plans following joint venture deal with Conroy Gold
Its interest will increase progressively to 55% if it develops the Clontibret gold deposit to mine construction-ready status.
At the same time, Anglo Asian has been awarded warrants over 325,000 Conroy Gold shares, with an additional 1,625,000 warrants to be awarded on completion of the joint venture agreement.
The Conroy licences in question cover over 800 square kilometres in a major gold district in the north-east of the island of Ireland, known as the Longford Down Massif, which contain significant gold targets including Clontibret, where there is an existing 500,000-ounce resource, and Clay Lake, which has long been considered highly prospective.
In a statement, Anglo Asian’s chief executive Reza Vaziri expressed his excitement about the deal: "It is of sufficient scale to considerably add to the company's operations, but of a size which will not adversely impact the development of our assets in Azerbaijan. Our experience in building and operating mines will combine well with Conroy Gold's exploration skills and local knowledge and together we can drive the project forward.”
Conroy Gold chairman, Professor Richard Conroy for his part expressed confidence in the ability of Anglo Asian to move things forward.
“I am particularly encouraged by the expressed intention to proceed with the project in the immediate term,” he said.
Conroy shares rose more than 20% on the news. They are now trading at more than three times the level of their late 2019 lows.