G2 Goldfields closes $22 million AngloGold Ashanti investment

Share this article

G2 Goldfields Inc. [GTWO-TSXV, GUYGF-OTCQX] said Friday it has closed a previously announced $22 million strategic investment by AngloGold Ashanti Ltd. [AU-NYSE, ANG-JSE, AGG-ASX].

The investment by AngloGold consisted of 24.5 million common shares of G2 Gold fields priced at 90 cents per share, leaving the South African gold miner with an 11.7% interest in G2.

Net proceeds from the investment are expected to be used to advance exploration at G2’s Oko project in Guyana and for working capital purposes.

G2 Goldfields is headed by a team of professionals who have been directly responsible for previous gold discoveries in Guyana, including the funding and development of the Aurora Gold mine, Guyana’s largest gold mine.

The OKO project is located in the southeastern portion of the Guyuni Mining District, approximately 120 kilometres west-southwest of Guyana’s capital city, Georgetown, and directly north of Reunion Gold Corp.’s [RGD-TSXV] Oko West project.

OKO is accessed by a combination of boat and truck, using rivers and logging roads, from the town of Bartica and the Itaballi crossing on the Mazaruni River.

The company said five discrete, multi-kilometre long zones of gold mineralization have been delineated by soil sampling and mapping of historical and current artisanal mining operations.

In a press release on April 26, 2022, the company announced a maiden underground resource estimate for the OKO Main Zone, which is estimated to contain an inferred resource of 3.3 million tonnes of 9.25 g/t gold or 974,000 ounces.

On top of that is an indicated resource of 793,000 tonnes of grade 8.63 g/t gold or 220,000 ounces.

The resource study estimates that the gold is hosted by three primary shear zones (S3, S4, and S5), which vary in length between 350 and 750 metres and have been explored to a maximum depth of approximately 350 metres where they remain wide open. Additionally, shear zones four and five are both open along strike to the north.

The Oko district has been a prolific alluvial goldfield since its initial discovery in the 1870s, and modern exploration techniques continue to reveal the considerable potential of the district, GS has said.

G2 shares eased 1.4% or $0.01 to 68 cents on Friday. The shares currently trade in a 52-week range of 96 cents and 57 cents.

In connection with the strategic investment, G2 and AngloGold entered into an investor rights agreement under which AngloGold was granted pre-emptive and top-up rights for future security issuances by G2.

“This is a testament to the quality of our assets and exploration team,’’ said G2 CEO Dan Noone. “Anglo Ashanti’s investment will allow us to continue to advance our high-grade OKO project whilst aggressively exploring our district scale land package,’’ he said.

Share this article

Leave a Reply

Your email address will not be published. Required fields are marked *