US-based computer firm Dataram has entered a definitive agreement to acquire US Gold (USGC) and its subsidiaries.

USGC is a gold exploration and development company with an estimated net present value (NPV) of $160m.

Subject to customary closing conditions and Dataram stockholder approval, the deal is expected to complete by the end of second quarter of FY 2017.

Dataram chairman and CEO Dave Moylan said: "We have been actively looking for diversification opportunities for more than a year and our entry into the natural resources sector is intended to diversify risks and unlock value for our stockholders.

"Our executive management team sees this acquisition as an economically viable and exciting project given the overall landscape and market opportunity within natural resources. While the global memory business is continuing to experience significant average selling price declines and strong margin pressure, we have refocused the core business to operate in this environment.

"On an industry analysis, we are seeing gold equities rebounding in 2016."

"After the acquisition concludes, Dataram will consider all options to maximise its memory products and performance solutions business in the best interest of the pre-acquisition stockholders. We further believe the acquisition of US Gold will generate strong capital appreciation."

Currently, USGC controls the US’s Copper King Project, an advanced stage gold exploration project based in Wyoming, which owns certain mining leases and other mineral rights in the Silver Crown Mining District of south-east Wyoming.

US Gold CEO and director Edward Karr said: "On an industry analysis, we are seeing gold equities rebounding in 2016.

"US Gold has a top quality management and advisory team and owns the Copper King property, which has a prior completed preliminary economic assessment (PEA) by mine development associates (MDA) showing measured, indicated, and inferred resources of 1.1 million ounces of gold and 285 million pounds of copper.

"The PEA was completed in 2012 at a lower gold price and shows a net present value (NPV) of Copper King of $160m at $1,100 gold. We are excited to move forward on advancing our development and exploration project."

US Gold has also entered a definitive agreement to buy certain mining claims associated with a gold development project in Eureka County, Nevada, called the Keystone Project.

It is reported that the Keystone Project acquisition is expected to be complete before the finalisation of Dataram’s acquisition of USCG.