30th Sep 2014 10:57
LONDON (Alliance News) - Mariana Resources Ltd Tuesday said it has entered an agreement to acquire a majority stake in Nassau Gold Ltd for the development of the Nassau Gold project in South America.
Mariana Resources shares were up 15% to 2.12 pence per share following the announcement.
It said it has entered into an option agreement to earn up to a 50.01% interest in Nassau Gold Ltd, a joint venture company between Mariana and Sumin Resources Ltd for the development of the Nassau Gold Project in the Republic of Suriname.
Sumin is a private company holding 100% of Nassau Gold Ltd, which has the option to acquire 80% of the Nassau Project.
Under the option agreement Mariana has paid Sumin USD150,000 by issuing 4.1 milliion shares for 2.24 pence per share. Mariana has applied for admission of the shares to trading on AIM, and this is expected to become effective on or about October 7, said Mariana in a statement.
Exploration is expected to commence in October at the Nassau project, targeting three gold workings: Witlage Creek, Bamboo Creek and Bowl.
Mariana is the operator of the project and has contracted Dennis LaPoint as project manager via Nassau Gold Ltd for the Nassau Project.
"The Nassau Gold project represents another unique and exciting opportunity for Mariana offering a project with 'major' gold production potential," said Mariana Chief Executive Glen Parsons.
"The potential prospectivity for a sizeable resource with both high-grade gold, as well as bulk tonnage oxide zones is our objective. With exploration targeted to commence in the coming weeks we will be able to deliver milestones in the short term as we move Nassau up our company portfolio development curve," he added.
By Joshua Warner; [email protected]; @JoshAlliance
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