Canada’s Rhyolite Resources (TSXV: RYE) has announced that it has entered into a definitive share purchase agreement to acquire all of the outstanding share capital of ONCorp.
To go ahead with the deal, Rhyolite Resources committed to issuing 15,546,566 common shares to the vendors. ONCorp is a privately-held arms-length company that holds an option to acquire an 80% interest in the Brothers project in Suriname.
To acquire this 80%, the buyer will have to make cash payments for an approximate total of $5.15 million over the course of five and a half years and commit $4.5 million to exploration.
“Suriname has become one of the fastest emerging gold jurisdictions in South America and the Brothers concession is in the center of an established gold belt hosting large, high-grade gold deposits,” Richard Graham, Rhyolite’s president and CEO, said in a media statement. “We look forward to advancing this project to uncover another potential Rosebel or Merian.”
The 96-square-kilometre Brothers concession is located approximately 45 kilometres from Newmont’s Merian mine, which produced 500,000 ounces of gold per year, totalling 1 million ounces in the first two years of production alone. The project is within the same general mineralized lithologic and structural setting as Merian and Iamgold’s Rosebel mine.
According to Rhyolite, since 2014, samples collected from the project include 100 channel samples of which 32% are greater than 1 gram per tonne gold and 63% of which are greater than 100 parts per million.
“Three samples exceed 10 g/t with a high of 17.25 g/t. There is a total of 246 grab samples, including 2018 results. Of these, 84 exceed 1 g/t (34%) and 194 exceed 100 parts per billion (80%). Of these, 22 exceed 10 g/t with a high assay of 105 g/t from the nearby Manse Mine. A sieve analysis demonstrated a value of 135 g/t for the 105 g/t sample,” the media release reads.