THE BOURSE WHISPERER: Merah Resources (ASX: MEH) has entered into two separate agreements with Castle Minerals (ASX: CDT) to acquire 100 per cent of Castle’s interests in the Antubia and Kong gold projects in Western Ghana.
Under the terms of the agreements, Merah is to issue up to six million shares to Castle for each project in three equal tranches based on:
– Tenement grant and/or ministerial consent;
– Definition of a JORC resource; and
– Completion of a PFS and mining lease grant.
Merah Resources must also make staged cash payments to Castle totalling $270,000 and commit to spending a minimum $350,000 per annum on exploration.
“We are very pleased to have reached agreement with Merah that will allow renewed exploration activity over these two projects whilst providing significant upside for Castle shareholders through a substantial equity position in Merah,” Castle Minerals managing director Mike Ivey said in Castle’s announcement to the Australian Securities Exchange.
Project locations. Source: Castle Minerals announcement
The Antubia gold project is owned by Castle via its wholly owned subsidiary Topago.
The Ghanaian Government can require a 10 per cent free-carried interest in the Antubia gold project.
The Antubia gold project comprises two contiguous prospecting licences known as Antubia and Boizan with a combined area of 295 square kilometres, located along strike from Newmont’s 17.7 million ounce Ahafo gold mine on the faulted western margin of the Sefwi belt.
Three significant but underexplored gold anomalies have been identified at Antubia, including the plus-3.5km long Boizan target area.
According to Merah shallow drilling undertaken at Boizan has demonstrated the presence of near surface gold mineralisation, intersecting up to 18 metres at 2.74 grams per tonne gold.
The Kong gold project consists of eight Prospecting Licence applications for which the registered applicant is Carlie, also a wholly-owned subsidiary of Castle.
As with the Antubia gold project, the Ghanaian Government can again require a 10 per cent free-carried interest in the Kong gold project.
The Kong Gold Project is located over an area of 1,200sqkm and covers plus-50 strike kilometres of contact zones between Birimian greenstones, Birimian sediments and later stage granitoids.
Merah explained these are interpreted to be structural and not stratigraphic contacts, which provide an optimal geological and structural setting for gold prospectivity.