Latin-American gold producer Greenstone Resources (TSE) has sold a 12.3% interest in its newly formed Colombian subsidiary to Instituto de Fomento Industrial (IFI).
IFI is a Colombian government agency that promotes private industry in the country. The agency has been involved in several successful mining ventures, including the Cerromatoso nickel mine and El Cerrejon, a coal producer. Greenstone plans to sell a 32.5% interest in Compania Minera Oronorte to Colombian and international investors through an initial public offering of ordinary (common) shares, to be traded on the Bogota and Medellin stock exchanges in Colombia. Greenstone will retain the remaining interest in the subsidiary.
Minera Oronorte’s primary asset is the Oronorte gold mine in northern Colombia. Once the public offering is completed, the company will expand annual production to 30,000 from 10,000 oz. The cash operating cost is expected to be US$220 per oz.
Oronorte has a mineral resource of 858,000 tons averaging 0.33 oz. per ton.
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