AngloGold Ashanti plc (AGA) announced that it intends, subject to execution of definitive documentation and satisfaction of customary conditions, to subscribe for 24,500,000 common shares in G2 Goldfields Inc. (G2) at C$0.90 per share for total consideration of C$22,050,000.
Following completion of the Subscription, AGA will own approximately 11.7% of G2’s issued and outstanding Shares.
G2 is actively exploring in Guyana, a country which hosts the Guiana Shield, one of the world’s most prospective gold provinces. The Guiana Shield is host to a number of significant deposits including the Aurora (6Moz) and Omai (5Moz) mines and the Toraparu (7.0Moz) deposit in Guyana; the Rosebel (13.7Moz) and Merian (6Moz) mines in Suriname; and the Montagne d’Or (3.9Moz) and Camp Caiman (2.9Moz) deposits in French Guiana.
The G2 team, led by Patrick Sheridan, Executive Chairman and Dan Noone, CEO is comprised of professionals who have been directly responsible for the discovery of millions of ounces of gold in Guyana as well as the financing and development of Aurora, Guyana’s largest gold mine, as per the statement.
G2’s principal OKO project comprises the OKO Main Zone and Ghanie deposits. G2 announced, in April 2022, an Indicated Mineral Resource estimate for the OKO Main Zone containing 220,000 oz Au (793,000 tonnes grading 8.63 g/t Au) and an Inferred Mineral Resource estimate of 974,000 oz Au (3,274,000 tonnes, grading 9.25 g/t Au). G2 intends to publish a Mineral Resource update in the first half of 2024.
G2 has other exploration targets within a 20km radius of OKO Main and Ghanie, which are located directly adjacent to Reunion Gold Corporation’s OKO West discovery and where an Indicated and Inferred Mineral Resource of 4.24Moz, grading 1.91 g/t, was published in June 2023.
AGA believes that G2’s exploration properties have significant growth potential.
As part of the Subscription, AGA will be granted pre-emptive and top-up rights for future security issuances by G2.
Commenting on the Subscription, Alberto Calderon, CEO of AngloGold Ashanti said, “This strategic investment in G2 will provide us with a strong position in one of the world’s key gold provinces with significant potential for new discoveries. We look forward to G2’s continued exploration success as the Guiana Shield continues to develop.”
The Subscription is expected to close in January 2024, subject to execution of definitive documentation and satisfaction of customary conditions.
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