RTG Mining Inc. agreed to acquire a 90% stake in the Chanach gold-copper project in the Kyrgyz Republic from White Cliff Minerals Ltd.
The company said Sept. 6 that it will pay US$2.2 million in cash and issue US$500,000 in shares to acquire the project holder, PB Partners (Malaysia) Pte. Ltd. The agreement is subject to approval by White Cliff Minerals shareholders and is expected to be completed by the end of October.
RTG Mining noted that the remaining 10% of the project is owned by a joint venture partner represented by two local geologists who are supportive of the deal. The company will manage and operate the joint venture and will solely fund operating costs until the completion of a bankable feasibility study.
The company also said it obtained a new unsecured US$2.5 million loan to cover the purchase price and an initial drill program.
Chanach hosts inferred resources of nearly 3 million tonnes grading 5.11 g/t gold for 484,000 ounces of gold, and 17.2 Mt at 0.37% copper for 64,000 tonnes of copper.
