Newmont, Agnico Eagle form Exploration JV in Colombia

Newmont (NYSE:NEM) and Agnico Eagle Mines (NYSE:AEM) say they have formed a 50-50 joint venture in Colombia to explore the Anzá project and advance other prospective gold targets of district-scale potential in the country.

Operator Agnico Eagle will solely fund the JV until expenditures equal Newmont’s previous $2.9M investment in Anzá, which is expected in the next 12 months; the parties then will continue funding on a 50-50 basis.

“Agnico Eagle has been actively looking at Colombia for some time, and this low-cost entry is consistent with our exploration strategy,” says the company’s exploration senior VP Guy Gosselin, adding the Anzá project is located within the Mid-Cauca belt, which hosts several world class gold deposits.

In an analysis of Agnico Eagle published recently on Seeking Alpha, Power Hedge says the miner is “a great way to play the gold bull market” but the company is expensive compared to peers.