FenixOro secures El Porvenir Mine to expand gold production capabilities

In Colombia, FenixOro Gold Corp has announced the completion of a definitive agreement to acquire the El Porvenir Mine along with a processing facility. The deal significantly enhances the company's Abriaqui project land package, allowing for consolidation of these assets. As stated by FenixOro CEO John Carlesso, this transaction is transformative, linking adjacent properties and adding considerable mineral resource potential. The El Porvenir Mine has the capacity for production and is fully permitted, positioning FenixOro favorably for an expanded development and production strategy. The El Porvenir Mine, previously the largest historic producer in the district, is located just 3 kilometers northwest of the Abriaqui project. It has not yet been drilled, with existing mining levels extending only down to 280 meters below the surface. This acquisition allows FenixOro to leverage the existing drilling data and exploration upside for future resource generation at varying depths. The strategic importance of this consolidation comes at a time when exploration and production synergy is critical for accelerating growth pathways. The transaction consists of two phases, where the first phase involves the issuance of approximately 39 million common shares to the Colombian parties for a 70% interest in the assets. A second phase will see an additional 16 million shares issued in exchange for the remaining 30% interest. Notably, upon completion of the agreement, no Colombian party involved shall gain more than 9.9% ownership, aligning with mandated guidelines for foreign investments in the region. This structure is designed to bolster share value while securing a larger stake in the significant mineralization potential of the combined properties. Overall, this union of assets is intended to enhance FenixOro’s capability for resource extraction and production, all while providing strong growth prospects for stakeholders. The integration of high-grade assets, alongside plans for an upcoming drill program, underlines FenixOro's commitment to a robust production strategy that aligns with its long-term growth objectives. As the first phase concludes, the company aims to implement significant explorative activities that further substantiate its mineral resource estimates.