Mineros (TSX: MSA) is buying AngloGold Ashanti’s (NYSE: AU) shelved La Colosa gold project in Colombia, taking control of one of the country’s largest undeveloped deposits for an upfront payment of just $10 million (C$13.6 million).
The Medellín-based miner will pay up to another $60 million in milestone payments tied largely to environmental permitting, Mineros said Monday. The deal transfers ownership of AngloGold Ashanti Colombia, which holds the concession over the exploration-stage project in Cajamarca, about 150 km west of Bogotá.
La Colosa hosts 833 million indicated tonnes grading 0.87 gram gold per tonne for 23.4 million oz. contained metal and 218 million inferred tonnes grading 0.71 gram for 5 million oz., based on AngloGold Ashanti’s most recent estimate in December 2024.
The project has been largely dormant since 2017, when community opposition led to a Cajamarca referendum rejecting large-scale mining and forcing AngloGold to halt exploration. But Red Cloud Securities mining analyst Alina Islam called the acquisition “a modestly positive step,” noting Mineros is gaining exposure to a giant gold system while limiting risk because most of the purchase price depends on future permits.
Shares in Mineros gained 3.2% on Tuesday morning in Toronto to C$6.10 apiece, valuing the company at C$1.8 billion. They’ve traded in a 52-week range of C$1.75 to C$7.84.
Beats other deals
“The company is already a large and respected operator in the country and is well-positioned to navigate social and environmental challenges, given the relationships it has already established,” Islam said in a note on Tuesday. “We see this as an efficient way to deploy capital, as the company has acquired one of the largest undeveloped gold projects in Colombia for just $2.50 per ounce.”
That’s far below the roughly $19-per-ounce average for recent Latin American gold project transactions, according to Red Cloud. Those include Mineros’ 2025 acquisition of the La Pepa project in Chile, the 2023 consolidation of the Soto Norte project by Aris Mining (TSX: ARIS; NYSE: ARMN) and Barrick Mining’s 2024 sale of the Alturas project in Chile (TSX: ABX; NYSE: ABX).
Mineros said it plans to rebuild trust with local communities and authorities before advancing the asset. The company also intends to distance the project from its controversial past, including by considering a new name.
Porphyry open pit
AngloGold discovered La Colosa in 2006 within Colombia’s Middle Cauca metallogenic belt. The porphyry-style system was once envisioned as a large open-pit mine using cyanide processing, a plan that triggered environmental concerns over potential impacts on local water resources.
A 2017 municipal vote in Cajamarca saw about 98% of residents oppose mining in the area, effectively stopping the project and placing it under force majeure.
For now, Mineros’ production remains anchored by its operating assets: the Nechí alluvial operation in Colombia and the Hemco mine in Nicaragua. The Nechí district has produced gold for nearly a century from sand and gravel deposits along the Nechí River floodplain using gravity recovery methods.
In Nicaragua, the Hemco property near Bonanza hosts underground mines and processing plants that recently expanded throughput to about 2,000 tonnes per day as part of a broader plant upgrade the company reported this month. Together the operations are expected to produce 213,000 to 233,000 oz. gold in 2026, with roughly 60% coming from Hemco.
Be the first to comment on "Gold M&A: Mineros buys AngloGold’s stalled La Colosa"