LATIN AMERICA — Newmont eyes copper-gold project

A letter of agreement has set the stage for a unit of Newmont Mining (NYSE) to acquire 60% of the Fierro Urco copper-gold property in Ecuador.

Newmont Overseas Exploration can do so from Ag Armeno Mines & Minerals (VSE) and Trans Atlantic Enterprises (VSE). The juniors are related by a common board of directors.

A venture agreement among the three companies is to be completed by the end of May.

Fierro Urco has seen little drilling and, though unreachable by road, Newmont intends to start work there by early April. The major can finance all exploration and associated engineering through a feasibility study. To maintain this right, it must keep the property in good standing (under Ecuadorian laws) and make payments totaling $5 million to the two companies.