Under the terms of the agreement, GoldMining’s indirect subsidiary paid $200,000 in cash for the project
Image: NewRange Gold has sold Yarumalito gold project to GoldMining. Photo: courtesy of Steve Bidmead/Pixabay.
GoldMining has completed its indirect acquisition of the Yarumalito gold project from NewRange Gold in Colombia.
Under the terms of the agreement, GoldMining’s indirect subsidiary paid $200,000 in cash and delivered 1,118,359 newly issued common shares of the company to Newrange Gold for the project.
Additionally, the subsidiary granted the vendor a 1% net smelter returns royalty, which can be re-purchased by it at any time before the completion of a feasibility study on the project in consideration for $1,000,000.
Under the deal, the shares of GoldMining issued are subject to a four month and one day hold period and certain additional ongoing resale restrictions.
Located nearly 75km southwest of the city of Medellin in the Department of Antioquia in Central Colombia and approximately 40km south of GoldMining’s La Mina project, Yarumalito consists of one concession for a combined area of roughly 1,453Ha.
Yarumalito consists of both bulk-tonnage, gold-copper porphyry and high-grade, intermediate sulphidation epithermal systems with six geophysical and geochemical targets identified on the project.
The acquisition will help in growing GoldMining’s portfolio of gold-copper projects in the Mid Cauca Belt of Colombia.
The Mid Cauca Belt is home to numerous multi-million-ounce gold deposits including Buritica (Continental Gold), Titiribi and La Mina (GoldMining), Marmato (Gran Colombia Gold) and Nuevo Chaquiro (Anglogold Ashanti Limited).
GoldMining had acquired Narrow Lake property in May 2018
In May 2018, GoldMining had completed its indirect acquisition of the Narrow Lake property to add additional gold claims contiguous with its Yellowknife gold project in Yellowknife in Canada’s Northwest Territories.
The property includes the N1 and N2 claims, which cover a total area of 618 hectares and are contiguous with the southern boundary of the company’s Nicholas Lake-Ormsby property, one of the four properties that comprise the Yellowknife gold project, which was acquired by the company in July 2017.