Russia-based Nordgold SE has entered an option agreement on the Arakaka gold project in Guyana, under which it can acquire 100% of the project from Australia’s Alicanto Minerals Ltd (ASX: AQI) for a total of $8 million.
Located in Guyana’s Northwest Mining District, the Arakaka project comprises a permit area totalling 300 square kilometres. Current exploration activity at Arakaka is focused on four target areas with near to medium term resource potential.
Alicanto will remain operator of the project for the first 12 months overseeing the exploration program. Drilling will begin as soon as practicable, with Nordgold required to spend at least $1.5 million to fund exploration.
In June 2018, Barrick Gold Corp. pulled out of its earn-in agreement on Arakaka after spending $7.1 million on regional reconnaissance programs — just shy of the $8 million required to earn 65% of the project — leaving Alicanto with full ownership.
Previous explorers at Arakaka have spent more than $20 million on the project.