Alicanto Minerals has struck a deal with privately held Canadian firm Virgin Gold Corporation to divest of its Arakaka gold project, in Guyana, for up to C$4.75-million.
Alicanto MD Peter George told shareholders that the sale of the Arakaka project would enable the company to focus its resources on unlocking the value of a potentially company-making opportunity at its Greater Falun copper/gold and Sala silver projects, in Sweden.
The consideration for the sale would consist of a C$50 000 cash deposit, a C$700 000 cash payment on the completion of the transaction, and Alicanto earning up to C$4-million in Goldblock common shares subject to Virgin achieving a resource of up to two-million ounces at the Arakaka project in the two years following the transaction.
Alicanto on Tuesday said that the sale was subject to a number of conditions precedent, including Virgin Gold completing a due diligence on the project area, as well as all necessary third party consent, and Virgin completing a reverse takeover of Canadian-listed Goldblock Capital Inc, and completing a capital raise of no less than C$5-million through a share issue.
The transaction would also be subject to Alicanto shareholder approval.
The Arakaka gold project covers some 300 km2 of tenement and hosts a number of mineralised corridors.