Alicanto gains support from Nordgold at Arakaka

By Trevor Hoey. Published at Jun 19, 2019, in Mining

Alicanto Minerals Ltd (ASX:AQI) has entered into an earn-in agreement with Nord Gold SE whereby Alicanto has granted Nordgold the exclusive right to acquire a 100% interest in the Arakaka Gold Project, Guyana.

Importantly, Nordgold has an outstanding track record in discovering and developing large-scale gold deposits in a number of regions, including South America.

The group has 10 producing mines in Burkina Faso, Guinea, Russia and Kazakhstan.

In terms of the agreement, Nordgold may earn up to a 100% interest in the Arakaka Project by fulfilling certain conditions.

The agreement would see Nordgold sole fund US$3 million in exploration expenditure within a one year earn-in period, and at completion of the earn-in period, pay an additional US$5 million to Alicanto as an “Earn-in Right”.

Alicanto would continue to operate the project during the first 12 months, and the drilling campaign would commence as soon as practicable with Nordgold required to spend a minimum of US$1.5 million.

If Nordgold terminates the agreement and ceases to make contributions at any time during the earn-in period the company will forfeit all rights and interests to the Arakaka Gold Project.

Complementary to proposed VMS acquisition

While this is a significant development in terms of progressing the Arakaka Gold Project, Alicanto has taken on another dimension since entering into an option and share sale agreement to acquire the Oxberg and Naverberg VMS (Volcanogenic Massive Sulphide) projects in Sweden.

Alicanto has entered into an option and share sale agreement to acquire the Oxberg and Naverberg projects.

The area is highly prospective for zinc, lead, silver, copper and gold with the broader district home to world-class producing mines that feature impressive grades.

The company has immediate multiple walk up high grade VMS drill targets at Naverberg with rock chip samples including 26.1% zinc, 8.8% zinc and 2.4% copper.

Alicanto intends to explore the Oxberg and Naverberg Project area in the next 12 months following shareholder approval of the transaction.

Management plans to undertake data compilation, field mapping, and surface geochemical sampling ahead of proposed drilling in the second half of the year.

Following shareholder approval, Alicanto will now be delivering market sensitive news flow on multiple fronts, making it a stock to watch in 2019/2020.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Thanks for subscribing!

X