Los Cerros Ltd. executed a binding term sheet to secure 100% of the Chuscal gold joint venture in Colombia by purchasing the share held by AngloGold Ashanti Ltd. unit AngloGold Ashanti Colombia SA.

The AngloGold unit will receive a 4.3% stake in Los Cerros as part of the deal, with an option to increase its shareholding to 10%, according to an April 30 release.

Los Cerros will own 100% of Chuscal and the entire Quinchia project, which holds Chuscal as well as the Miraflores, Tesorito and Dosquebradas prospects.

The agreement will also give Los Cerros access, at no cost, to AngloGold's induced polarization geophysical equipment for 1.5 years and access to its regional Quinchia IP geophysical data sets.

The deal is conditional on the AngloGold unit receiving approval from the South African Reserve Bank, Los Cerros' shareholder approval, signing of a formal agreement, and Los Cerros completing due diligence.