- Concerning the existing joint venture between Acacia and Advance Gold respecting the Gold Rim property in Kenya
- Advance Gold has been notified that Barrick would like to renegotiate the terms of the agreement in principle.
- One of the highest-grade intersections on the Liranda Corridor came from the joint venture ground, returning 6 metres of 30.9 g/t gold
Kamloops, British Columbia–(Newsfile Corp. – August 1, 2019) –
Advance Gold Corp. (TSXV: AAX) (“Advance Gold” or “the Company”) wishes
to report that having reached a signed agreement in principle with
Acacia Mining plc (“Acacia”) concerning the existing joint venture
between Acacia and Advance Gold respecting the Gold Rim property in
Kenya, during the period of the proposed takeover of Acacia by Barrick
Gold Corp. (“Barrick), Advance Gold has been notified that Barrick would
like to renegotiate the terms of the agreement in principle.
Two of the three claims that make up the joint venture are to the
east and west of Acacia’s 100% owned property. The joint venture covers
approximately â…” of the Liranda Corridor, with Acacia’s 100% property
making up the remaining â…“ of the corridor. Acacia has spent
approximately $70 million on exploration and development on the Liranda
Corridor, with $5 million spent on the joint venture ground and the
remainder on Acacia’s 100% owned property.
The Liranda Corridor is in an Archean craton setting, with a large
deep-seated structure, and high-grade gold zones. One of the
highest-grade intersections on the Liranda Corridor came from the joint
venture ground, returning 6 metres of 30.9 g/t gold, see April 18/2016
news release. The remaining key exploration question for the joint
venture ground is concerning the continuity of the high-grade gold zones
which will require further exploration drilling.
Allan Barry Laboucan, President and CEO of Advance Gold Corp., commented: “After
months of negotiations to come to terms on an agreement in principle
concerning Advance Gold’s purchase of the Acacia interest in the joint
venture, it is disappointing that Barrick now want to renegotiate the
terms. The agreement in principle included no cash payments up front, or
stock at any time, a one-time $3 million payment upon commercial
production and a sliding scale royalty. The terms of the agreement would
allow us to focus funds on exploration and was something we could move
on. The joint venture ground is highly prospective having the key
criteria on a target like this, including the right age of the rocks, a
large deep-seated structure that runs throughout 2 of the 3 claims in
the joint venture. Most importantly, it has high-grade gold
mineralization drill confirmed in several areas as set out in the news release of April 18/2016 and
is open for exploration to advance the known zones along strike and at
depth, as well as exploring for potentially more zones. We will assess
our various options that are described below. We are keenly eager to
advance the Kenya projects, but it must be on the right terms with funds
focused on exploration not on “upfront” cash payments, for us the funds
need to be focused on exploration drilling to move the Kenya projects
forward.”
The joint venture is owned 85.37% by Acacia and 14.63% by Advance
Gold. If during the joint venture either party decides to sell their
interest, the other party has a first right of refusal on any offering
price. If Advance Gold is diluted down to a 10% interest (approximately
$1.7 million in exploration to dilute to an NSR), then its interest
converts to a 3% uncapped net smelter royalty (NSR). In the event that
Advance Gold is diluted to an NSR, Acacia Mining has no first rights of
refusal and the NSR can be sold directly to any interested party. Both
parties have the right to dilute the other down if the other party
decides to not contribute exploration funds.
Julio Pinto Linares is a QP, Doctor in Geological Sciences with
specialty in Economic Geology and Qualified Professional No. 01365 by
MMSA., for Advance Gold and is the qualified person as defined by
National Instrument 43-101 and he has read and approved the accuracy of
technical information contained in this news release.
About Advance Gold Corp. (TSXV: AAX)
Advance Gold is a TSX-V listed junior exploration company focused on
acquiring and exploring mineral properties containing precious metals.
The Company acquired a 100% interest in the Tabasquena Silver Mine in
Zacatecas, Mexico in 2017, and the Venaditas project, also in Zacatecas
state, in April, 2018.
The Tabasquena project is located near the Milagros silver mine near
the city of Ojocaliente, Mexico. Benefits at Tabasquena include road
access to the claims, power to the claims, a 100-metre underground shaft
and underground workings, plus it is a fully permitted mine.
Venaditas is well located adjacent to Teck’s San Nicolas mine, a VMS
deposit, and it is approximately 11km to the east of the Tabasquena
project, along a paved road.
In addition, Advance Gold holds a 14.63% interest on strategic claims
in the Liranda Corridor in Kenya, East Africa. The remaining 85.37% of
the Kakamega project is held by Acacia Mining (63% owned by Barrick Gold
Corporation).
For further information, please contact:
Allan Barry Laboucan,
President and CEO
Phone: (604) 505-4753
Email: [email protected]
Corporate website: www.advancegold.ca