Newmont to buy Lomeros

Denver — Newmont Mining (NEM-N) has signed an agreement to acquire the Lomero-Poyatos polymetallic property in Spain from junior Cambridge Mineral Resources.

Situated in the Pyrite Belt of southern Spain, the property contains a resource of 14.4 million tonnes averaging 3.4 grams gold, 90 grams silver, 1.4% copper, 4% zinc and 1.2% lead.

Newmont can purchase the property after completing an initial program of 2,500 metres of drilling drilling plus metallurgical work, followed by the expenditure of at least US$8 million on exploration over five years. The major can also buy the property outright at any time during the agreement.

Newmont will also subscribe to a US$500,000 private placement in return for 1.25 million shares of Cambridge. The transaction is subject to 30 days of due diligence.

Cambridge is one of several dozen exploration companies listed on London’s Alternative Investment Market, Europe’s answer to the Canadian Venture Exchange.