New Dimension Resources Ltd. said Feb. 20 that it struck a deal to acquire the advanced-stage Las Calandrias, Los Cisnes, and Sierra Blanca gold-silver projects in Argentina's Santa Cruz province from Sandstorm Gold Ltd.
The portfolio covers about 86,000 hectares in the Deseado Massif geological terrane, and was previously held by Mariana Resources Ltd., which was acquired by Sandstorm in July 2017.
Under the deal terms, the company will pay C$400,000 in cash or shares on each anniversary of the acquisition until Dec. 31, 2032. The company will also grant Sandstorm a 2% net smelter returns royalty on each of the properties.
The most advanced project in the package, Las Calandrias, is estimated to host indicated resources of 11.84 million tonnes at 1 g/t gold and 17.40 g/t silver, containing 381,000 ounces of gold and 6.62 million ounces of silver. Inferred resources are pegged at 870,000 tonnes at 0.93 g/t gold and 5.17 g/t silver containing 25,900 ounces of gold and 144,000 ounces of silver.
Former Mariana Resources COO Eric Roth will be appointed as president, CEO and a director of New Dimension. New Dimension's current president, CEO, and director, Fred Hewett, is expected to move to the chairman role. New Dimension expects to nominate former Mariana Resources CEO Glen Parsons to be elected to its board at the next annual general meeting.
Concurrently, New Dimension intends to consolidate its shares on a 1-for-2.5 basis and complete a nonbrokered private placement of up to 27,272,727 post-consolidated shares at 11 cents to raise about C$3 million.
The deal closing is conditional upon completion of the financing, with the latter expected to occur by March 29.
The company intends to use the proceeds for exploration and business development activities focused on advancing the Argentine portfolio.