- Rhyolite Resources (RYE) has completed the acquisition of 2777662 Ontario, (ONCorp) through a definitive share purchase agreement
- Through ONCorp, Rhyolite now holds the option to acquire 80 per cent interest in the Brothers Project, located in Suriname
- Rhyolite can exercise this option by meeting various conditions, including cash payments, work capital commitments, and drilling activities
- In exchange for ONCorp, its vendors received 15.5 million common shares in Rhyolite from the company
- Rhyolite Resources (RYE) is up 11.11 per cent and is currently trading for C$0.50 per share
Rhyolite Resources (RYE) has completed the acquisition of 2777662 Ontario (ONCorp), through a definitive share purchase agreement.
ONCorp is a privately held arms-length company, which holds an option to acquire an 80 per cent interest in the Brothers Project. Measuring 96 square kilometres, the Brothers Project is located roughly 140 kilometres south of Suriname’s capital city, Paramaribo.
In exchange for ONCorp, its vendors received 15,546,566 common shares in Rhyolite from the company. Through the acquisition, Rhyolite now has the option to acquire a majority interest in the Brothers Project.
In order to exercise this option, the company must meet various conditions, including cash payments, capital commitments, and drilling activities.
If the company does not earn a 60 per cent interest in the project, it will return the interest it has earned to date.
Rhyolite Resources’ President and CEO, Richard Graham, commented on the benefits of the company’s acquisition of ONCorp.
“The opportunity to earn up to an 80 per cent interest in the Brothers Project is an important step forward in the transformation of Rhyolite, positioning the company for future growth.
“We believe that there is excellent potential to discover significant additional gold mineralisation at Brothers, and are planning a comprehensive exploration program to follow up on these targets at the centre of an established gold belt.
“Rhyolite continues to advance our Paxson gold project in Alaska and pursue other strategic acquisitions to add to our growing portfolio,” he said.
Rhyolite Resources (RYE) is up 11.11 per cent and is trading for $0.50 per share, as of 12:32pm EDT.