During the option period, Antler will serve as the operator of the project. Credit: Lucian Coman via Shutterstock.com.

Antler Gold Namibia, a subsidiary of Antler Gold, has entered into a binding letter of intent (LOI) with Fortress Asset Management to sell its interest in the Erongo Central Gold Project.

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The agreement outlines a structured acquisition process over three years, with a total consideration of $5.5m in cash and shares, alongside a commitment of $6m in exploration expenditures, and issuing Antler a 2% net smelter return across the complete project.

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Under the terms of the deal, Fortress Asset Management will make an immediate cash payment of $25,000 upon signing the binding LOI and another $25,000 following the definitive option agreement 45 days later.

The optionee is also expected to issue $2m in consideration shares upon listing on an international stock or securities exchange.

One year after the definitive option agreement, Fortress Asset Management (optionee) must pay $250,000 in cash and commit to $1m in exploration expenditures to earn a 60% interest in the project.

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At the 24-month mark, an additional $500,000 in cash, $1m in consideration shares and $2m for exploration are required for an 80% interest.

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Finally, to acquire a full 100% interest, the optionee must pay $700,000 in cash, issue another $1m in consideration shares and spend $3m on exploration by the 36-month anniversary.

During the option period, Antler will serve as the operator and will charge a 10% management fee on project expenditures.

A special purpose vehicle will be established at the beginning of the option period. Fortress Asset Management is tasked with preparing the definitive agreement within 30 business days following the execution of the LOI.

Erongo Gold Project, consisting of four active exclusive prospecting licenses and one application, spans 19,514.44 hectares in a prolific mining district.

Initial exploration by Antler has confirmed the project’s potential, with historical rock chip assays yielding high-grade gold results. Antler’s exploration efforts have included detailed geological mapping, a comprehensive heliborne geophysical survey and reverse circulation drilling that intersected significant mineralisation.