Polo Resources Limited ANDINA GOLD - INVESTMENT UPDATE (1465X)
August 26 2020 - 2:00AM
UK Regulatory
TIDMPOL
RNS Number : 1465X
Polo Resources Limited
26 August 2020
This announcement contains inside information as defined in
Article 7 of the EU Market Abuse Regulation No 596/2014 and has
been announced in accordance with the Company's obligations under
Article 17 of that Regulation.
26 August 2020
POLO RESOURCES LIMITED
( " Polo " or the " Company ")
ANDINA GOLD - INVESTMENT UPDATE
Polo Resources Limited (AIM: POL), the multi-sector investment
company with interests in oil, gold, coal, copper, phosphate,
lithium, iron and vanadium, announces that Polo, in conjunction
with Andina Gold Corp. ( " Andina "), has entered into an
Assignment of Rights Agreement with the Canadian listed company
Fenix Oro Gold Corp ( " FenixOro"). The Agreement is aimed at
achieving some return on an investment of US$4 million made in a
greenfield gold exploration project in Colombia in 2011, as
announced on 24 May 2011. Polo currently holds a 62% interest in
Andina and has power of attorney to act on behalf of Andina.
Background :
In May 2011, the Polo completed an investment of approximately
US$4 million in the gold exploration company Andina. This
investment allowed Andina to acquire a 100 percent interest in a
greenfield gold exploration project in Colombia (the " San Bolivar
Gold Project ") from R&C Group SAS ( " R&C") and other
parties. At that juncture the San Bolivar Gold Project consisted of
applications for 29 gold concessions in the highly prospective San
Bolivar area which was regarded as Colombia ' s third most
important gold producing region. At the time of the investment the
gold price had risen to circa US$1,500/oz.
Unfortunately, unacceptable delays in registering the
exploration licences resulted in Polo terminating the Andina joint
venture and writing down its investment in the financial year ended
30 June 2012.
Polo has continued to pursue avenues for recovering the
investment and legal action did deliver embargo and seizure rights
over the mining titles of R&C. Polo's concessions in the San
Bolivar region are adjacent and contiguous to FenixOro ' s own
concessions and both companies believe there is mutual benefit in
amalgamating the FenixOro concessions and Polo ' s embargoed rights
over the R&C mining titles.
FenixOro is a recently listed Canadian company with a focus on
acquiring gold projects with world class exploration potential in
the most prolific gold producing regions of Colombia. FenixOro has
an agreement with a local legal Small Mining Association to earn
90% on two of its claims and owns the balance of its claims 100%.
The newly elected Governor and Secretaria de Minas for Antioquia
have been very supportive of sustainable modern mining development
as a means of generating economic and social benefits, particularly
in the current COVID-19 environment.
What the FenixOro deal means :
Polo and Andina have assigned their embargo and seizure rights
over the mining titles of R&C to FenixOro for 1,000,000 common
FenixOro shares at an issuance price of CN$0.44 per share, for an
aggregate share consideration value of CDN$440,000. The shares are
subject to a moratorium until the earlier of 21 February 2022 or
the date Andina is formally awarded the mining titles by the
relevant Court.
Through the equity position in FenixOro, Polo believes there is
potential for upside from exploration of the amalgamated block,
particularly at this time of surging gold prices. FenixOro has
already experienced an increase in share price from CA$0.21 to
CA$0.53 over the past six months.
In addition to the Assignment of Rights agreement with FenixOro,
Polo is also endeavouring to recover some US$3 million in surface
fees that were paid in advance for Mining Titles to Colombia ' s
National Mining Agency.
For further information, please contact:
Polo Resources Limited
- Kudzayi Denenga, Investor Relations +27 (0) 787 312 919
Allenby Capital Limited (Nominated
adviser & broker)
- John Depasquale +44 (0)20 3328 5657
About the Company
Polo Resources Limited is a multi-sector investment company
focused on investing in undervalued companies and projects with
strong fundamentals and attractive growth prospects. For complete
details on Polo, please refer to: www.poloresources.com
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