Anglo American and Luminex Resources sign US$57.3M joint venture agreement
September 25, 2018
57.30 Million USD
On September 25, 2018, Anglo American plc, through one of its subsidiaries, entered into an earn-in and joint venture agreement with Luminex Resources with respect to Luminex's Pegasus A, Pegasus B and Luz concessions in Ecuador. Pursuant to the transaction, Anglo American has the right to earn a 60% ownership interest in the concessions if it invests an aggregate amount of US$50 million and pays US$7.3 million in cash to Luminex over seven years
The agreement allows Anglo American to manage the joint venture company, the concessions and, in certain circumstances, to expedite the exploration program so that the financial obligations to Luminex may be completed in a term shorter than seven years. Anglo American also has the right to earn an additional 10% ownership interest in the joint venture company if it solely funds all the required work up to a decision to construct a mine at the concessions, in which case the aggregate ownership of Anglo American will be 70%.
Anglo American is a multinational mining company headquartered in London, United Kingdom. It has operations in Africa, Asia, Australasia, Europe, North America and South America.
Luminex Resources, based in Vancouver, is a Canadian-based precious and base metals exploration and development company focused on gold and copper projects in Ecuador.
McCarthy Tétrault LLP advised Anglo American with a team led by Roger Taplin that included Frederico Marques and Adam Wanke.