GoGold makes a deal for $30 million in cash and 741,000 gold equivalent ounces
After making a deal to combine with privately-held Absolute Gold last May, GoGold Resources (CVE:GGD) has now filed a NI 43-101 showing the mineral interests it acquired from Absolute are a resource containing 37.1 million ounces of silver equivalent and 741,000 ounces gold equivalent.
Last month, GoGold and Absolute began a reverse takeover. When the deal is complete, Absolute will disappear, and the shareholders will get a significant interest in GoGold. The business tie up will also release $30 million in funds from an escrow account.
Trading of GoGold shares have been suspended since March while the deal is underway.
With the NI 43-101 in hand, the CEO says that the new public company can now push forward on Absolute's tailings recovery project in Mexico.
"The gold and silver is hosted in several large deposits of tailings sands from the historical mine that average about one gram per tonne gold equivalent," said Terry Coughlan, President and CEO of GoGold in a news release.
"Work by Absolute shows that a low cost mining and heap leach recovery process could be a viable option to develop the property. Our first goal will be to quickly move the project into the feasibility stage."
The tailings project is located near the town of Parral in Chihuahua State, Mexico.
GoGold sees the mine and money from the deal propelling its San Diego project, an epithermal gold and silver system.
"With the combination of low mining costs and simple gold and silver recovery process options, we envision a project with the potential to be put into production quickly and generate the cash flow to fund GoGold’s exciting exploration project at San Diego."
GoGold is based in Halifax. It also has projects in Newfoundland.