Caldas Gold to acquire Juby project in Ontario
Colombia-focused Caldas Gold (TSXV: CGC) is casting its eyes on Canada with plans to acquire the Juby gold project, about 11 km southeast of the Timmins gold camp in Ontario in the southern part of the Abitibi greenstone belt.
The company’s flagship asset is its Marmato gold project in Colombia’s Middle Cauca gold district, about 80 km south of Medellin. Caldas is a spin-off of Gran Colombia Gold (TSX: GCM; US-OTC: TPRFF).
Under a deal announced with South American Resources, Caldas will issue the privately held company 20 million common shares for the project.
Caldas must also pay C$9.5 million due to Lake Shore Gold, a subsidiary of Pan American Silver (TSX: PAAS; NYSE: PAAS). (South American Resources had been part of an arrangement to acquire Juby from Lake Shore Gold).
In addition, South American Resources has an agreement with Lake Shore Gold to acquire a 25% stake in claims adjoining the Juby project, and under its deal with Caldas, those can be acquired for an additional $500,000.
The Juby project, 100 km southwest of the town of Gowganda, consists of more than 14,000 acres of patented claims within the Shining Tree area of the Abitibi greenstone belt.
The transaction has been approved by the boards of Caldas Gold and South American Resources and is expected to close in mid-June.
(This article first appeared in The Northern Miner)