JOHANNESBURG (miningweekly.com) – American exploration company Renaissance Gold (RenGold) has signed an agreement with AngloGold Ashanti North America for an option to buy an exploration property northeast of Beatty, in Nye County, Nevada.
RenGold, a gold/silver-focused exploration company that trades on the TSX Venture Exchange in Canada, says on its website that the option agreement provides for a series of payments to RenGold, beginning with $100 000 on signing, $200 000 a year later, $300 000 on the second anniversary of the option agreement and finally $2.4-million on its third anniversary.
On paying $3-million, AngloGold will own a 100% interest in the property, while RenGold and Altius Minerals Corporation will retain 1% and 1.5% net smelter return royalties respectively on future production.
The North American business unit of the Johannesburg-listed AngloGold may withdraw at any time during the option period, with no retained interest.
The so-called Silicon property, which has 277 unpatented mining claims on 2 308 ha, hosts a low-sulfidation, epithermal gold system, silica and prospects for mercury.
Past producing gold properties in the area include Bullfrog, Sterling, Fluorspar Canyon and Mother Lode and currently active nearby is Corvus Gold’s North Bullfrog project.
RenGold executive chairperson and CEO Ronald Parratt states that the agreement, which provides RenGold with a nondilutive source of cash to fund ongoing operations, complements the company’s usual earn-in-to-joint-venture approach.