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.