Calidus Resources Sells Off Conglomerate Gold Rights

THE BOURSE WHISPERER: Calidus Resources (ASX: CAI) has entered into a binding letter of intent (LoI) to sell off the Conglomerate Gold Rights over the company’s portfolio of eight exploration licenses.

Calidus Resources will receive seven million shares in TSXV-listed Pacton Gold Inc, a bundle that is currently valued at C$3.5 million.

The actual tenements will be retained by Calidus, as the agreement is over right to explore for and mine conglomerate gold, with all shear hosted/basement gold to be retained by Calidus.

The portfolio in question consists six granted exploration licenses and two exploration licenses currently under application with mapped conglomerates.

Pacton will be liable for rehabilitation and environmental obligations and will need to spend a minimum of C$50,000 in aggregate on all tenements during each 12-month period from commencement of the Gold Rights Agreement.

“This is a pleasing outcome as sale of the Conglomerate gold rights provide Calidus with an opportunity to realise value over non-core areas of the company’s portfolio,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.

“This value can in time be applied to assisting in funding our core focus which is developing the Warrawoona gold project.”

Calidus explained that the Gold Rights relate to material that overlies the basement rocks and that is formed of transported material.

Specifically, this means the Fortescue Group conglomerates that overlie the Warrawoona Greenstone Belt.

The relevant tenements covered by the LoI do not include areas covered by the company’s current resource or planned drilling program.