VANCOUVER (miningweekly.com) – Americas-focused project developer GoldMining Inc is making its first foray into Peru with the 100% acquisition of Crucero gold project, located in south-eastern Peru, from Lupaka Gold.
The TSX-V-listed companies have signed a sale agreement providing for total payment of 3.5-million GoldMining common shares and $750 000 in cash, representing about 3% dilution to GoldMining shareholders.
"We are pleased to announce another milestone acquisition in furtherance of our long-term growth and value-building strategy. With this acquisition, we continue to realise our vision of consolidating multimillion-ounce gold assets and maximising gold leverage for our shareholders," GoldMining chairperson Amir Adnani said in a statement.
The transaction is subject to customary closing conditions, including receipt of requisite third party and regulatory consents and approvals. The parties currently expect closing to occur by the end of September 2017.
Lupaka previously reported a Crucero pit-constrained indicated resource of one-million ounces grading 1.01 g/t gold and an inferred resource of 1.03-million ounces grading 1.03 g/t gold at a 0.4 g/t gold cutoff at the project. GoldMining advised that it would treat this as an historic estimate and plans to engage a qualified person to complete the necessary work to verify the estimate and complete an independent technical report.
The project had seen about 23 000 m of diamond drilling completed over 72 holes, and there are a further ten geophysical and geochemical targets identified ready for GoldMining to explore.
The project is located 150 km north-east of the city of Juliaca in the Department of Puno, in mining-friendly south-eastern Peru. The project is road accessible by paved road from Juliaca to the town of Crucero, with the remaining 50 km to site by gravel road. High-power electrical lines pass within 8 km of the property.
The project comprises three mining and five exploration concessions covering 4 600 ha. The exploration concessions are renewable on an indefinite basis through payment of annual fees to the Peruvian government. The three mining concessions are held indirectly by Lupaka through a 30-year assignment from a third party, running until 2038, and are subject to certain royalty obligations.
Haywood Securities has advised GoldMining regarding the transaction, and Sangra Moller acts as legal counsel.