S2 Resources has signed an earn-in agreement to acquire a 70% interest in three of RenGold’s properties on gold mineralised trends in Nevada, US.
Under the agreement, in order to acquire a 70% interest in each of the South Roberts, Pluto, and Ecru projects, S2 Resources needs to spend $3m on each project over a five-year period.
S2 Resources managing director Mark Bennett said: "Each property comprises a compact land package with well-defined and thought out drill-ready targets.
"Some of these targets are deep but their potential scale is very significant. The drill-ready nature of these opportunities complements the longer term strategic value we believe we can add to our other exploration projects in Sweden and Finland”.
"Importantly, the deal structure enables us to drill test and either earn-in or move on to new targets."
In parallel with signing the agreement, RenGold received a payment of $75,000.
Located on the Battle Mountain Eureka trend of gold deposits in Eureka County, the South Roberts project lies under shallow pediment along the western margin of the northern Nevada rift.
The Pluto project is located in Lander County, spanning the north-south 'Rabbit Trend' of gold deposits.
Under the findings of a detailed gravity and soil geochemistry report at the Pluto project, a multi-element anomaly was identified mostly within a north-east trending horst block.
The Ecru project is also located in the Lander County, falling on Battle Mountain-Eureka Trend in the Cortez district, near the Gold Acres, Pipeline and Cortez Hills gold deposits.
It is estimated that multiple undrilled target areas are located in the project area.
Separately, S2 has also invested C$1m in GT Gold that owns the Saddle gold discovery in the Golden Triangle of British Columbia, Canada.