Antler Gold Inc. has finalized a definitive agreement with Fortress Asset Management for the Erongo Central Gold Project in Namibia. Under the agreement, Fortress can acquire up to 100% interest in the project for US$5.5 million, with an additional US$6.0 million for exploration expenditures. Antler will retain a 2% net smelter return royalty on the entire project.
The Erongo Central Gold Project comprises four active Exclusive Prospecting Licenses and one application, totaling 19,514.44 hectares in the Damara Belt. It is strategically located near the 3.2 Moz Twin Hills Gold Project and QKR’s Navachab Gold Mine. Initial exploration has confirmed high potential for a structurally controlled, metasediment-hosted hydrothermal gold system, with best historical rock chip assays including 80 g/t Au.
The previously announced binding letter of intent has now been superseded by the Definitive Agreement, under which Fortress can acquire from Antler Gold Namibia (Proprietary) Limited up to a 100% interest in the Project (the “Transaction”). Under the terms of the Definitive Agreement, Fortress will provide total consideration of US$5.5 million and an additional US$6.0 million for exploration expenditures on the Project over the term of the Definitive Agreement. Additionally, Antler will retain a 2% net smelter return royalty on the entirety of the Project, with no buyback provisions. Antler will act as the operator for the Project during the term.
Chris Drysdale, CEO of Antler, stated: “Finalizing this agreement creates significant value for Antler Gold and our shareholders, positioning us to benefit from both near-term exploration outcomes and long-term production potential. Our Project Generation team has been diligently working, and we are eager to apply the same approach to future projects.”
Antler received shareholder approval for the Transaction at its Annual and Special Meeting held on July 15, 2024.
The Erongo Central Gold Project, located in Namibia’s most promising gold district, 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 contiguous to the 3.2 Moz Twin Hills Gold Project (Osino Resources-Yintai Gold Corp.) and QKR’s Navachab Gold Mine. Initial exploration by Antler Gold since 2021 has confirmed the high potential for a structurally controlled, metasediment-hosted hydrothermal gold system. The project hosts 30 km of prospective magnetic conductors yet to be systematically drilled.
ntler Gold Inc. 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.