AngloGold to invest in G2 Goldfields
AngloGold Ashanti, a South African gold mining company, is making a strategic investment in G2 Goldfields, a Canadian mining company. G2 Goldfields plans to use the net proceeds for further exploration at its Oko project in Guyana, as well as for working capital and general corporate requirements.
The firm said it eyes to invest C$22.05 million ($16.5 million) for an 11.7% stake in G2 Goldfields. this involves acquiring 24.5 million G2 shares at C$0.90 each. As part of the investment, AngloGold will have pre-emptive and top-up rights for future security issuances by G2. The shares will be sold through a private placement in the US and will be subject to a four-month hold period.
Oko project
The Oko project, located in the Cuyuni mining district, spans 19,200 acres and has a significant strike length of 17km. The Oko main zone has indicated mineral resources estimated at 220,000 ounces of gold and inferred mineral resources estimated at 974,000 ounces of gold.
The investment from AngloGold Ashanti is expected to support the advancement of G2 Goldfields’ high-grade OKO project and aggressive exploration of its district-scale land package. G2 CEO Dan Noone expresses delight in AngloGold Ashanti becoming a major shareholder, highlighting the quality of G2’s assets and exploration team.
AngloGold Ashanti CEO Alberto Calderon sees the strategic investment as providing a strong position in a key gold province with potential for new discoveries. The completion of the transaction is contingent on the two companies signing definitive documentation, expected to occur in the next month.
