Under the agreement, Alba will issue 83,333,333 shares to Primorus Investments in exchange for the 49% interest, valuing the total consideration to be £316,667.
The acquisition gives Alba access to the Clogau gold mine and several highly prospective gold targets and former gold workings within a total option area of 106.94km².
Alba Mineral Resources executive-chairman George Frangeskides said: “The project fits squarely within Alba’s strategy to identify projects, which include former working mines, which have both near-mine expansion potential but also have significant exploration upside in the wider project area.
“The opportunity presented by this project is pretty unique: high-grade gold in the heart of the UK, the fact that Welsh gold attracts a significant premium over spot rates, the historic connections of Welsh gold with the heritage of the United Kingdom, the potential for finding more gold in the vastly under-explored exploration ground; all these are factors, which together make a strong case for investment.
“The Clogau gold mine is also complementary to our existing UK onshore assets, being our oil and gas interests at Horse Hill and Brockham in the Weald Basin in Surrey.”
Alba noted that the project has the potential for unworked veins containing gold mineralisation.
The company will work with GMOW to accelerate the development of the project, with special focus on bringing the mine back into production and exploration of the wider project area.
The redevelopment of the mine includes preparation of a planning application to be submitted for the re-opening of the mine.
Initially, Alba aims to carry out detailed underground structural mapping and sampling in an attempt to modernise the geological interpretation of the project. Following this, the partners plan to commission airborne magnetic and electro-magnetic surveys.