South America-focused gold explorer Metminco Ltd (ASX:MNC, LON:MNC) has bought Minera Seafield SAS from RMB Australia Holdings Limited (RMB) in return for a stake in the company.
Minera Seafield owns 100% of the Quinchia portfolio in Colombia where a NI 43-101 mineral resource of 2.8 million ounces of gold has been estimated.
Metminco has issued RMB with 50 million fully paid ordinary shares at A$0.5 cents per share.
The acquisition of the Quinchia gold portfolio is on target for completion prior to May 31.
The Quinchia gold portfolio covers 6,043Ha of granted concessions and an extra 3,792Ha of pending applications.
It also contains a number of deposits and exploration targets including the near-term development opportunity at the Miraflores deposit, an inferred mineral resource at Dosquebradas and a significant gold porphyry target at Tesorito.
Metminco said: "The transaction paves the way for Metminco to become a gold producer with strong cashflows to fund exploration and production growth plans."
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