THE BOURSE WHISPERER: Renaissance Minerals has entered into a Share Sale Agreement with OZ Minerals to acquire the latter’s Cambodian gold assets.
The deal will be completed via Renaissance’s acquisition of OZ Minerals’ wholly owned subsidiary, OZ Minerals (Cambodia) Limited.
Cambodian gold project. Source: Company announcement
Upon completion of the acquisition, OZ Minerals (Cambodia) will become a wholly owned subsidiary of Renaissance.
Renaissance claims the Cambodian gold projects cover an area of approximately 1,100 square kilometres within the core of a prospective new Intrusive Related Gold (“IRG”) province in the eastern region of the country.
A JORC Indicated and Inferred Resource estimate of 12.6 million tonnes at 1.8 grams per tonne for 729,000 ounces of gold has recently been defined at the 100 per cent-owned Okvau gold deposit.
“This is a company making acquisition for Renaissance,” Renaissance Minerals managing director Justin Tremain said.
“It is a unique opportunity to be able to secure a project with a 729,000 ounce gold resource defined within a single deposit along with multiple drill ready prospects that offer exceptional exploration potential in an emerging new gold district.”
Tremain explained that Cambodia has significant potential to host large, world class gold deposits yet it remains largely unexplored.
“Globally, Intrusive Related Gold systems are known to host multi-million ounce gold deposits,” he continued.
“This newly discovered Intrusive Related Gold province in Cambodia is analogous with the Tintina Gold Belt in Alaska that hosts truly world class gold deposits such as Pogo (six million ounces), Donlin Creek (38 million ounces), Fort Knox (10 million ounces) and Livengood (20 million ounces).”
The deal will result in deal Renaissance gaining a major corporate cornerstone shareholder in OZ Minerals.
The company believes having such a well-known shareholder on its register will be beneficial in achieving its growth objectives.
Renaissance is also of the opinion that OZ Minerals maintaining a shareholding in the company demonstrates its belief in the potential of the Cambodian gold projects.
“We also look forward to welcoming to Renaissance the existing experienced in-country team that OZ Minerals has established over a number of years,” Tremain said.
“Their knowledge and experience in working in Cambodia combined with their strong understanding of the geology and mineralisation will be invaluable.”