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Orinoco buys out Troy's stake in Brazil gold mine

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(Credit: Orinoco Gold) This image file contains the company logo of Perth, Australia-based gold explorer Orinoco Gold Ltd.Orinoco Gold Ltd
February 18
9:18 AM 2014

Gold exploration firm Troy Resources has agreed to exit its 70% holding in Brazil-based Sertao gold mine. The said stake will be sold to ASX-listed firm Orinoco Gold, according to Creamer Media's Mining Weekly.

Orinoco has also struck a deal with Amazonia Minceracao to purchase 100% of the latter's issued share capital. The agreement will allow Orinoco to own the remaining 30% stake in the Sertao mine and the Antena mining lease, the report detailed.

Troy Chief Executive Officer Paul Benson explained the benefits of the deal for both firms: "It will enable Orinoco to get their exciting Cascavel project into production quicker than they otherwise would have, at lower cost. From Troy's perspective, it not only cleans up the portfolio and removes a small tax liability, it gives us a mechanism to potentially share in some future tax credits."

In addition, Benson told the shareholders that the more important benefit of the transaction to Troy is an access to the Cascavel project, the report stated.

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