Canadian gold company in Guyana to sell 12% stake to U.S. firm for CDN$22.5M

Dec 21, 2023 News

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Kaieteur News – G2 Goldfields Inc., a Canadian-based company, disclosed on Tuesday its agreement with AngloGold Ashanti (AGA), a US-based firm, to finalize a strategic investment deal. AGA has committed to purchasing an 11.7% stake in G2’s Guyana mining project for CDN$22,050,000.

According to G2’s statement, AGA will acquire the 11.7% shares at a rate of $0.90 per share. Proceeds from this transaction will be directed toward advancing exploration activities at G2’s Oko project in Guyana, along with funding, working capital and general corporate needs.

The agreement includes provisions granting AGA pre-emptive and top-up rights for future security issuances by G2. However, the completion of this strategic investment remains contingent upon the execution of definitive documentation, encompassing customary closing conditions such as approval from the TSX Venture Exchange. The subscription is anticipated to conclude in January 2024, subject to fulfilling these conditions.

Dan Noone, CEO of G2, expressed enthusiasm about AGA’s interest, stating, “We are delighted Anglo Ashanti has confirmed it intends to be a major shareholder in G2. This is a testament to the quality of our assets and exploration team. Anglo Ashanti’s investment will allow us to continue to advance our high grade OKO project whilst aggressively exploring our district scale land package.”

The sale of shares to AGA will be conducted through a private placement in the United States, following exemptions from registration requirements under the United States Securities Act of 1933 and Canadian securities laws. The shares will be subject to a four-month hold period in accordance with Canadian securities laws.

For its part, AGA expressed confidence in G2’s exploration properties, citing significant growth potential within Guyana. The company highlighted Guyana’s position as part of the Guiana Shield, a highly promising gold province globally.

The Guiana Shield is host to a number of significant deposits including the Aurora (6Moz) and Omai (5Moz) mines and the Toraparu (7.0Moz) deposit in Guyana; the Rosebel (13.7Moz) and Merian (6Moz) mines in Suriname; and the Montagne d’Or (3.9Moz) and Camp Caiman (2.9Moz) deposits in French Guiana.

AGA noted in its statement that the G2 team, led by Patrick Sheridan, Executive Chairman and Dan Noone, CEO is comprised of professionals who have been directly responsible for the discovery of millions of ounces of gold in Guyana. Notably, G2 had previously financed and developed Guyana’s largest mine, Aurora, before its sale to China’s Zijin Mining in 2020 for US$238 million.

The principal OKO project comprises the OKO Main Zone and Ghanie deposits. Initial estimates in April 2022 indicated 793,000 indicated tonnes grading 8.63 grams of gold per tonne and 3.3 million inferred tonnes grading 9.25 grams of gold, amounting to 974,000 gold ounces.

G2 plans to release a Mineral Resource update in the first half of 2024 and has identified exploration targets within a 20km radius of OKO Main and Ghanie. These are situated adjacent to Reunion Gold Corporation’s OKO West discovery, which published an Indicated and Inferred Mineral Resource of 4.24Moz, grading 1.91 g/t, in June 2023.

Commenting on the subscription to G2 Guyana’s mining project, Alberto Calderon, CEO of AngloGold Ashanti said, “This strategic investment in G2 will provide us with a strong position in one of the world’s key gold provinces with significant potential for new discoveries. We look forward to G2’s continued exploration success as the Guiana Shield continues to develop.”

About G2 Goldfields Inc.

As stated on the company’s website, the G2 Goldfields team is comprised of professionals who have been involved in the discovery of more than 7 million ounces of gold in Guyana and the financing and development of Guyana’s largest gold mine (RPA, 43-101, Technical Report on the Aurora Gold Mine, March 31, 2020).

The Oko Main Zone discovery is the initial fruit of the application of this extensive in-country experience. Ongoing exploration within the 17km long Aremu – Oko trend has generated multiple drill targets, similar in geological setting and scale to Oko Main. The Aremu – Oko district has been a prolific alluvial goldfield since the rush of the 1870’s.

Modern exploration by the G2 Goldfields team has begun and continues to reveal the exceptional potential of this district.

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• AngloGold Ashanti (AGA), Canadian, firm, G2 Goldfields Inc., Guyana

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