Antler Gold has announced that its subsidiary, Antler Gold Namibia has signed a binding Letter Of Intent with Fortress Asset Management LLC, an arms-length private company.
Pursuant to the Agreement, the Optionee will be granted the right to acquire up to 100% interest in the Company’s Erongo Central Gold Project over a three-year period for total consideration of US$ 5.5 million and incurring US$ 6.0 million of exploration expenditures and issuing Antler a 2% net smelter return across the entire Project.
The Erongo Gold Project comprises four active Exclusive Prospecting Licenses (EPLs 6162, 7261, 6408, 8010) and one application (EPL 9534) totalling 19,514.44 hectares (~195 km2) in the South-Central Zone of the Damara Belt, and is strategically located in a mining district contiguous to the 3.2 Moz Twin Hills Gold Project (Osino Resources-Yintai Gold Corp.) and QKR’s Navachab Gold Mine.
This potential has been confirmed through initial exploration completed by Antler from 2021, targeting the Kranzberg Gold Trend, a structurally controlled, metasediment-hosted hydrothermal gold system. Best historical rock chip assay results of high-grade gold include 80 g/t Au, 6 g/t Au, 5.4 g/t Au, and 4.45 g/t Au from showings occurring within the Project area.
The Project hosts approximately 30 kilometers of prospective magnetic conductors underlying Quaternary sediment cover identified from the heliborne geophysical survey in 2021. These have not yet been systematically targeted, and drill tested during previous exploration efforts.
Antler will act as the operator during the option period and will be entitled to charge a management fee of 10% of expenditures incurred on the Project.
A Special Purpose Vehicle will be formed at the start of option period, as defined in the Agreement. The Company will be granted a 2% NSR royalty on the entire Project. Following the execution of the Agreement, Fortress will prepare the Definitive Agreement within 30 business days.
Antler Gold is a Canadian listed mineral exploration company focused on the acquisition and exploration of mineral projects in Africa’s Top-Ranked Jurisdictions, with exposure to both gold and Rare Earth Elements. The Company continues to assess new regional opportunities with the aim of building a risk diversified business model, which allows the company to generate short and long- term income whilst providing stakeholders with exposure to potential multiple returns that are generated from the discovery process.