Perth-based Titan Minerals (ASX: TTM) and Vancouver-based Core Gold (TSX-V: CGLD) announced that they are joining forces to create a diversified Latin America-focused, ASX-listed gold company with a portfolio of projects in Ecuador and Peru.
In a press release, the miners explained that they signed a binding arrangement pursuant to which Titan will acquire all of the issued and outstanding Core Gold common shares by way of a share exchange.
Once the merger is completed, Core Gold and Titan shareholders will each hold approximately 48.5% and 38.9% of the combined company, respectively, with the new shareholders subscribing for Titan Shares under the placement holding approximately 12.6% of the combined company, based on a minimum raise of A$20 million.
“With the additional A$20 million of equity capital to be obtained at closing of the merger, we can now undertake a significant exploration program at Dynasty Goldfield, drill test the other highly prospective properties, as well as optimize production capacity and recoveries at the Portovelo mill and processing plant, which has been underperforming due to Core Gold’s capital constraints,” Core Gold Lead Director, Gregg Sedun, said in the media statement.
The Dynasty Goldfield project is located in the Loja province in southwestern Ecuador and it is an advanced-stage gold project with a CIM-compliant mineral resource estimate of 437,000 ounces of gold at 4.7 Au g/t measured, and 585,000 ounces at 4.6 Au g/t indicated.
The Portovelo Mill and Processing Plant, which processes all ore mined from Dynasty with one of its two ball mills, is also in Ecuador and has a nameplate capacity of 2,000 tpd.
Around the same area, Core Gold also owns the high-grade Linderos gold project and the early-stage gold-copper exploration Duke project.
In southern Ecuador, the Canadian miner owns the Zaruma project, which is currently on care and maintenance. The site initially commenced production in 2013 and ceased in 2016, producing over 60,000 ounces of gold averaging >8g/t Au.
In southern Peru, on the other hand, Core Gold owns the Vista gold plant, a conventional crush, mill, leach, Carbon-in-Pulp circuit, which is currently undergoing commissioning. Once commissioned and the operating licence is granted, the plant will have a nameplate capacity of 150 tonnes per day.
Also in the Andean country, the miner owns the Las Antas gold project which, according to management, hosts significant exploration potential for stand-alone, bulk tonnage, disseminated style gold mineralization.
“The project also provides Titan with a key foothold into a broader district that contains multiple high-grade gold-silver veins. The recent Titan acquisition within the prolific epithermal gold belt of Southern Peru is an important step towards the development of a substantial land position in the region,” the media brief reads.
Titan owns the Torrecillas Concession in Southern Peru which, the Australian company says, has highlighted multiple targets with high-grade resource potential within the project area.