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Rose Petroleum enters new JV as it continues to develop a separate mining business

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Rose Petroleum (LON:ROSE) continues to move its legacy mining assets forward as its Mexican copper subsidiary Minerales VANE (MV) enters a new joint venture for a ‘drill ready’ project.

MV has secured an option to earn a 75% stake in the Tango concessions, in southern Sinaloa. 

The deal with the current owner Camargo SA will see MV spend US$5mln on the project over a five year period.

The focus of the project will be copper porphyry and molybdenum porphyry deposits, though the area also has precious metal (gold and silver) mining, though the volumes are not deemed significant.  The deal includes a 50:50 split of profits from gold and silver mining operations.

The first phase of drilling work on the porphyry targets is expected to cost between US$500,000 and US$1mln.

Rose chief executive Mathew Idiens told investors that the latest mining deal is part of a strategy to develop two separate, stand-alone businesses.

“With the expectation of the Utah Oil & Gas project becoming a significant stand-alone company, it is important for us to build up the mining side of Rose to a similar pedigree.

“I feel that sourcing projects of the calibre of the Tango project is essential for us to be able to create two stand-alone companies, one oil & gas and one mining.

“The agreement on the Tango property provides an excellent opportunity for the Company to move directly to the drilling stage on a major porphyry system.”

Idiens added: “These are exactly the type of projects our copper subsidiary AVEN Associates LLC has been looking to acquire.”

Quick facts: Rose Petroleum PLC

Price: 1.05 GBX

AIM:ROSE
Market: AIM
Market Cap: £3.01 m
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