- XAU Resources (GIG.P) has signed a definitive option agreement to acquire the Noseno Property in Guyana
- The capital pool company is granting NW Exploration a three percent net smelter returns royalty on commercial production from the property
- The all-cash deal is worth approximately C$3.2 million through various payments and work expenditure requirements over four years
- XAU is also beginning a $1 million non-brokered private placement
- XAU Resources is unchanged, trading at $0.055 at 9:30 am ET
XAU Resources (GIG.P) has signed a definitive option agreement to acquire the Noseno Property in Guyana.
The Toronto-based capital pool company is granting NW Exploration a three percent net smelter returns royalty on commercial production from the property.
The all-cash deal is worth approximately C$3.2 million through various payments and work expenditure requirements.
The Noseno Property is located in north-western Guyana in one of Guyana’s prospective greenstone belts, 210 kilometres from Georgetown, the capital of Guyana.
It is an early-stage greenfields project which is largely unexplored.
The Noseno Property comprises 37 licenses covering 37,623 acres. The Noseno Property is located in the same greenstone terrane as that which hosts the Aurora Mine, 46 kilometres to the southeast and the Toroparu Project, 58 kilometres to the south, in similar geological settings, and is considered to hold potential for the presence of similar orogenic-style gold mineralization.
Despite the favourable geological setting, the Noseno property has experienced no formal exploration.
The company is also commencing a $1 million non-brokered private placement associated with the acquisition. The offering will consist of 4,000,000 subscription receipts.
The Subscription Receipts will be offered on a private placement basis in all Canadian provinces.
The transaction remains subject to various conditions, including TSXV approval.
Finders may be paid a cash commission of 7 per cent.
XAU Resources is unchanged, trading at $0.055 at 9:30 am ET.