Orinoco Gold Ltd. (ASX:OGX) announced that it has entered into a strategic alliance with Brazil’s Cleveland Mining Company Ltd. (ASX:CDG). The aim of the alliance is to fast track development of Orinoco’s high-grade Cascavel gold project.
- Cleveland to plan, fund and assist Orinoco to mine Cascavel with the potential to commence near-term operations utilising OGX’s existing underground license with a plan to be developed for subsequent open pit operations following a request to modify OGX’s existing extraction license.
- Ore to be treated at Cleveland’s Premier Gold Mine, located in the same region, with mining targeted to commence in Q4 2014. Profits to be distributed on a 50/50 basis.
- Agreement secures the near-term development of Cascavel with investment from Cleveland, enabling the Company to focus on value-adding exploration activities within its broader Farina Goldfields project.
- Orinoco has received firm commitments for a placement of $1M to existing shareholders and has secured a $2M controlled placement agreement with Acuity Capital.