Orogen Gold Acquires Right to 51% Interest in Galileo's Nevada Gold-Silver Property.
M2 EQUITYBITES-April 25, 2016-Orogen Gold Acquires Right to 51% Interest in Galileo's Nevada Gold-Silver Property
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25 April 2016 - UK-based mining company Orogen Gold plc (LSE: ORE)has executed a binding and exclusive term sheet with Galileo Resources plc under which Orogen will have the right to earn-in to a 51% interest in Galileo's Silverton Gold-Silver property in Nevada, USA, the company said.
Oregen will acquire the interest by way of exploration expenditure of USD 400,000 within 18 months and thereafter the possibility to spend an additional USD 1.5m within 30 months to earn-in a further 24% interest, in total 75%, in the property.
Galileo will have the right to participate pro rata after the first expenditure; should it exercise this right it would retain a 49% equity interest in Silverton (as opposed to being diluted down to 25%).
The exclusive agreement is subject to due diligence, which is anticipated to be completed, within 45 days of signing, including formalisation of the exclusive agreement.
Galileo has granted Orogen the right to earn an initial 51% interest in the Silverton project over the 6km[sup.2] claim area through exploration spend of USD 400,000 over 18 months.
Orogen may earn an additional 24% interest in the project through a further exploration spend of USD 1.5m over a subsequent 30 month period.
Over the last three decades multiple companies including Olympic Mining, Westgold, Newmont and Pittston have explored the property for gold and silver.
Work completed comprised geochemical sampling, fluid inclusion studies, mapping, geophysics and drilling (~45 pre-Newcrest holes).
Since 2002 Newcrest has taken over 1,000 rock chip samples and drilled 42,983 ft in 29 RC (reverse circulation) drill holes.
The Silverton district occurs at the eastern margin of a caldera complex dated at 34Ma. Both high and low angle faults and fault breccias related to caldera rim tectonics are observed on the property.
Rocks consist of Palaeozoic dolomite/limestone detachment blocks surrounded and underlain by Tertiary rhyolite tuffs. Rhyolite dikes have also been mapped along caldera ring fractures and north trending faults.
Orogen Gold is focused on mineral exploration and development and is currently operating a gold exploration project at Mutsk in Armenia.
The Mutsk project was optioned by Orogen early in 2013 to follow-up reports of a new epithermal discovery within an established gold district.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Apr 25, 2016|
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