AngloGold Ashanti to buy RenGold’s silicon property in US

2 July 2017 (Last Updated July 2nd, 2017 18:30)

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.

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." 

“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.