Diversified gold miner Nordgold has entered into an option agreement with ASX-listed Alicanto Minerals for the exclusive right to acquire a 100% interest in the Arakaka gold project, in Guyana.
Under the terms of the agreement, Nordgold will have an option to acquire a 100% interest in the Arakaka project by sole funding $3-million in exploration expenditure within a one-year option period and paying an additional $5-million to Alicanto to exercise the option.
Alicanto will remain operator of the project for the first year overseeing the exploration programme with the drilling campaign to start as soon as practicable with Nordgold having funded a minimum of $1.5-million.
Exploration activity at the Arakaka project is currently focused on four well defined target areas with near- to medium-term resource potential.
CEO Nikolai Zelenski on Wednesday said the option agreement was in line with the company’s strategy of further growing its portfolio of attractive prospects, and it follows other similar agremeents that Nordgold has successfully made in the past.
“We expect to confirm the Arakaka project exploration potential within the next twelve months giving us the opportunity of exercising the option to acquire a 100% interest in the project,” he said.