Canada's Colt Resources Inc will invest at least 53 million euros ($73 million) in two gold prospecting concessions in Portugal's southern Alentejo region, and the company said on Thursday it considers the country as strategic to its growth.
Portugal gave the formal go-ahead to 10 mining prospection concessions which amount to a minimum investment of 8.6 million euros. Colt received three of the concessions, two for gold and one for other minerals, and the rest of them were awarded to Portuguese companies Minaport, PANN and CPF.
Colt is in Portugal to stay and grow. This was a strategic choice, based on the geological potential of the country and on today's opportunities, the company said in a statement.
The Canadian mining company's investment is destined for prospecting in the 2015-2020 period.
We estimate an initial production of 140,000 ounces of gold in five years, after a three-year pre-operation phase, the company said.
These concessions cover areas which, according to past estimates, comprise at least between 150,000 and 550,000 gold ounces, contained in five different deposits, Colt said.
The Montreal, Quebec-based company said that preliminary tests show that the gold should be easy to extract.
When the company first received government approval for a mining licence in Portugal on Oct. 24, its stocks rose as much as 9 percent. The shares last traded at 0.55 at Wednesday's close.