Siguiri Mining Guinea, a wholly owned subsidiary of Siguiri Gold Mining, will acquire an 80% interest in a mineral property located in Guinea from Samaranta Mining.
Samaranta holds its effective 80% interest in the property by virtue of its 100% ownership of Guinean Global Resources.
Samaranta Mining President and CEO Volkmar Hable said, "This transaction allows Samaranta to build its asset base while continuing to focus on its core Colombian properties."
The property features two types of oxide mineralization; alluvial-hosted laterite mineralization and primary quartz vein related or shear hosted mineralisation.
Siguiri Mining Guinea will acquire ownership of GGR upon paying $125,000 in cash, delivering 1.5 million shares of Siguiri Gold Mining, reimbursing Samaranta for reasonable out-of-pocket acquisition costs and completing $2,500,000 in exploration.
Samaranta will be granted a 2% net smelter royalty (NSR) on the property of which 1% NSR may be purchased at any time by Siguiri Mining Guinea for $1m.