Alicanto sells non-core gold project for $5.1m to fund ‘aggressive’ exploration at Greater Falun
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Selling the Arakaka gold project in Guyana allows Alicanto Minerals (ASX:AQI) to focus its financial and human resources on the 20,000m drilling campaign currently underway in Sweden.
The sale is subject to conditions, including that Canadian buyer Virgin Gold complete due diligence on Arakaka, obtain any necessary third party consents, and complete a reverse takeover of CSE-listed Goldblock Capital.
In turn, Alicanto will be required to seek shareholder approval for the disposal of the Arakaka project.
Under the agreement, Alicanto will receive C$750,000 cash and rights to Goldblock shares to a value of up to C$4 million when Goldblock hits certain NI43-101 compliant resource targets.
“The Arakaka sale will enable Alicanto to focus its resources on unlocking the value of what is a potentially company-making opportunity at Greater Falun and Sala,” Alicanto managing director Peter George says.
Last mined in 1962, the recently acquired Sala Project produced over 200 million ounces of silver at eyewatering grades of up to 7,000 g/t.
There’s significant exploration upside, the company says, with mineralisation ‘open’ at depth and along strike. ‘Open’ means there is probably more silver to find.
Drilling kicked off early May.
The Greater Falun project includes the historical Falun mine that produced 500,000 tonnes of zinc at 5%, 400,000 tonnes of copper at 4%, 160,000 tonnes of lead at 2%, 380,000 tonnes of silver at 35 grams per tonne and 5 tonnes of gold at 4g/t over its 1000-year life.
Despite this, the broader area is still believed to hold considerable potential, with a 20,000m drilling program now underway.
On May 12 the company announced it was close to the source after drilling at the ‘Stone Lake’ target – less than 10km from Falun — hit high grade copper.
This article was developed in collaboration with Alicanto, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.