- Alicanto Minerals (AQI) will keep full control its Arakaka Gold Project after earn-in partner Nordgold decided against buying the project
- Nordgold had already spent US$2.8 million on a drilling program at Arakaka
- Under the June 2019 earn-in deal, Nordgold would ha needed to spend another US$5 million to buy the project
- Alicanto now gets to capitalise on the Nordgold-funded work
- At market close, Alicanto Minerals is down just over 12 per cent and is trading for 7.2 cents per share
Gold explorer Alicanto Minerals (AQI) will keep its Arakaka Gold Project after Nordgold pulled out of an earn-in deal.
The companies inked up the deal in June 2019 under which Nordgold would need to spend US$3 million on exploration within 12 months. Nordgold would then have the right to pay an extra $5 million upfront to buy 100 per cent of the Arakaka project.
Nordgold’s decision to not buy the projects comes despite the US$2.8 million already spent on a drilling program at Arakaka.
Results from this drilling program include 19.05 metres at 7.43 grams per tonne of gold from 260.75 metres, including 0.5 metres at 202.4 grams per tonne of gold from 263.8 metres.
This drilling program was fully funded by Nordgold.
Arakaka is located in Guyana in South America. According to Alicanto, the area is one of the oldest and most prolific gold districts in the under-explored Guiana Shield.
CEO Peter George said this is the first time there has been targeted diamond drilling on the Arakaka main trend.
“With high-grade assays of over 200 g/t gold, I am very encouraged by these results and the continuity of mineralisation throughout the area. There are strong indications that multiple high-grade gold shoots exist within the shallowly dipping, stacked mineralised structures,” he said.
With Nordgold’s withdrawal, this means Alicanto has essentially had the drilling program funded entirely at no cost to the company.
“The company has benefitted from a strong working relationship with Nordgold and with nearly US$3 million spent on drilling over the past year without diluting our shareholders, Alicanto is now in a much stronger position to demonstrate the value at Arakaka,” he added.
Alicanto said it will now capitalise on the Nordgold-funded work.
At market close, Alicanto Minerals is down 12.2 per cent and is trading for 7.2 cents per share.