South Africa-headquartered global mining company AngloGold Ashanti is set to buy a minority stake in Guyana-focused G2 Goldfields.

According to a company statement, AngloGold Ashanti plans to subscribe 24.5 million common shares in G2 Goldfields at C$0.90 per share. This represents a total consideration of C$22.05m ($16.53m).

The subscription is expected to close in January 2024, subject to the signing of definitive documentation and satisfaction of customary conditions.

Once complete, AngloGold Ashanti will hold 11.7% of G2’s issued and outstanding shares.

AngloGold Ashanti CEO Alberto Calderon said: “This strategic investment in G2 will provide us with a strong position in one of the world’s key gold provinces with significant potential for new discoveries.

“We look forward to G2’s continued exploration success as the Guiana Shield continues to develop.”

G2 is primarily involved in exploring Guyana, which hosts deposits such as Aurora, Omai and the Toraparu deposit.

The G2 team includes professionals who were involved in the development of Aurora, the largest gold mine in the country.

G2’s principal OKO project includes the OKO Main Zone and Ghanie deposits.

In April 2022, G2 announced that the OKO Main Zone is estimated to contain 220,000 oz Au (793,000 tonnes grading 8.63 g/t Au) in the Indicated Mineral Resource category and 974,000 oz Au (3,274,000 tonnes, grading 9.25 g/t Au) in the Inferred Mineral Resource category.

The company plans to publish a Mineral Resource update in the first half of next year.

Additionally, G2 has identified exploration targets within a 20km radius of OKO Main and Ghanie.

In March this year, AngloGold Ashanti formed a joint venture with South Africa-based Gold Fields for Tarkwa and Iduapriem mines in Ghana.