AngloGold Ashanti to buy RenGold’s silicon property in US
AngloGold Ashanti North America has signed an option agreement to purchase Renaissance Gold’s (RenGold) silicon exploration property located around six miles north-east of Beatty in Nye County, Nevada, US.
Under the agreement, AngloGold will make a total payment of $3m to RenGold.
In order to earn 100% interest in the property, AngloGold will allow RenGold to retain a 1% net smelter return royalty (NSR) on future production.
Canadian mining company Altius Minerals owns a 1.5% NSR, which was included in an earlier generative funding agreement.
RenGold executive chairman and CEO Ronald Parratt said: “This agreement is for an option to purchase the silicon project for $3m within three years and the retention of a 1% NSR.
“It provides RenGold with a non-dilutive source of cash to fund ongoing operations and is a complement to our usual earn-in to joint venture type of agreement.”
The silicon property contains 277 unpatented mining claims spread over 5,702 acres and has extensive exposures of the upper portion of a low-sulfidation, epithermal gold system defined by chalcedonic and vuggy silica, alunite and clay alteration.
In addition, it hosts numerous prospects for mercury.
Renaissance noted that localised areas of high-purity silica were created at the property due to acid leaching.
It is claimed that the majority of the property remains untested because of limited historic drilling.