LONDON (SHARECAST) – AIM-listed private equity investor Origo Partners has bought a 30% stake in Altan Takhi Company (ATC) for $4m. ATC owns a 100% interest in the Budag Tolgoi copper-gold prospect, situated in the central copper belt of Mongolia.
ATC has indentified high grade sedimentary hosted copper and gold mineralisation close to the surface, including one 17 metre interval containing 3.26% copper and one 28 metre interval containing 1.4% copper and is preparing an application for a mining license in the near future.
Under the terms of the transaction Origo has also been granted an exclusive option, exercisable prior to April, 2011, to increase its shareholding to 80% for an additional consideration of $5.5m.
“This investment marks Origo’s third investment into Mongolian copper-gold prospects and is in-line with our strategy of assembling prime copper assets in prospective areas of Mongolia in order to benefit from growing Chinese demand for natural resources,2 said Origo chief executive officer, Chris Rynning.