SolidusGold to buy Northumberland project from Newmont

18 September 2016 (Last Updated September 18th, 2016 18:30)

SolidusGold has signed an agreement to acquire the Northumberland project in Nevada, US, from Newmont for $20m.

SolidusGold has signed an agreement to acquire the Northumberland project in Nevada, US, from Newmont for $20m.

The company has assigned Haywood Securities to raise aggregate gross proceeds of up to C$40m ($30m), which will be used to fund the project acquisition.

Northumberland hosts known mineralisation include a resource estimate completed by Fronteer Gold, which identified a deposit.

SolidusGold said it plans to expand and advance the near-surface oxide gold mineralisation amenable to heap leaching, in addition to exploration of deeper sulphide gold mineralisation.

"Subsequent to the historical resource estimate, $17.5m has been spent advancing the project."

SolidusGold chairman and Interim CEO Rick Van Nieuwenhuyse said: "We are very pleased to have come to an agreement with Newmont to acquire the renowned Northumberland Project containing over three million ounces of historical gold resource.

“Subsequent to the historical resource estimate, about $17.5m has been spent advancing the project.

“Due to continuous M&A activity, the availability of large-scale gold exploration assets in mining-friendly jurisdictions has become a rarity."

Located near the geographic centre of Nevada in northern Nye County, the Northumberland gold project area consists of around 8,900ha of unpatented lode claims and 1,572ha of patented mining claims, mill site patents, and fee lands.

Open-pit heap-leach mining activities were performed at the project from 1981 to 1990.

The deal is subject to customary closing conditions and is expected to close before 30 November.