AngloGold Ashanti takes 5.0% stake in Thesis Gold
Thesis Gold Inc. [TSXV: TAU, WKN: A3EP87, OTCQX: THSGF] has announced a strategic investment from AngloGold Ashanti Ltd. [AU-NYSE, ANG-JSE, AGG-ASX], which will acquire a 5.0% stake in the company by way of a private placement of 13.8 million shares at $2.79 per share, worth $38.7 million.
Under the agreement AngloGold will be granted certain financing and participation rights as well as technical committee appointment. Concurrently, Centerra Gold Inc. [CG-TSX, CAGDF-OTC], which is also a strategic investor in Thesis, has exercised its participation rights to maintain a 9.9% ownership interest by investing an additional $5.7 million via the purchase of 2.06 million common shares priced at $2.79 each.
Gross proceeds from the issuance of common shares to AngloGold Ashanti and Centerra will be around $44.4 million.
Thesis Gold shares advanced on the new, rising 5.6% or 16 cents to $3.00. The shares trade in a 52-week range of $3.27 and 69 cents.
Thesis President and CEO Dr. Ewan Webster said the investment by AngloGold Ashanti is “a strong validation of the quality and scale of the Lawyers-Ranch project and the disciplined work our team has completed to date.
Thesis recently launched the Environmental Assessment and permitting process for its 100%-owned Lawyers-Ranch gold-silver project at both the provincial and federal levels. The project is located in British Columbia’s Toodoggone Mining District.
The move came after Theses announced positive results from a prefeasibility study for the project. The study envisages strong gold-equivalent (AuEq) annual production rates for the first three years averaging 266,000 ounces, and 187,000 ounces over the 15-year mine life. The initial capital spend is pegged at $736.2 million. The all-in-sustaining cost is estimated at US$1,185 per AuEq. Total life of mine production is expected to be 2.84 million AuEq ounces.
Concurrent submission of an initial project description (IPD) and Engagement Plan to the B.C. Environmental Assessment Officer, and the IPD and a Plain Language Summary to the Impact Assessment Agency of Canada marked the beginning of the permitting process, and in important milestone for Thesis and the Lawyers-Ranch Project.
The IPD outlines the company’s plans to develop and operate the project, which is situated 450 kilometres north of Prince George and 275 kilometres north of Smithers. The project partially overlaps with the traditional territories of the Kwadacha Nation, Tsay Keh Dene Nation, Takla Nation and Tahltan Nation.
Thesis said it is committed to meaningful Indigenous engagement and public participation throughout the EA and permitting processes.
The Lawyers-Ranch project hosts an estimated mineral resource of 4.0 million AuEq measured and indicated, at 1.51 g/t AuEq and 727,000 AuEq ounces inferred at 1.82 g/t. The project has significant exposure to silver via an 84-million-ounce silver resource (measured and indicated) at 31.9 g/t and a US1.48 billion life of mine silver revenue estimate. Maiden mineral reserves stand at 76.16 million tonnes of ore grading 0.97 g/t gold and 28 g/t silver for a total AuEq grade of 1.33 g/t.
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