Founders Metals (TSX‑V:FDR) will acquire full ownership of its Antino Gold Project in Suriname, while Gold Fields (NYSE:GFI) increases its strategic investment to 19.9%.
The company has entered into a share purchase agreement with Nana Resources to acquire the remaining 30% of Lawa Gold, which holds all mineral rights and infrastructure comprising the 102,360‑hectare Antino project.
Founders will pay US$17 million ($23.9 million) in cash and 13,568,944 common shares, plus up to US$21 million in contingent milestone payments tied to resource estimates, permitting, construction, and production achievements.
Concurrent with the acquisition, Gold Fields Netherlands Services will invest US$76.96 million through a private placement of 14,146,850 common shares at US$5.44 per share.
“Consolidating 100% of Lawa Gold gives us full control of the entire 102,360-hectare Antino district as we enter the most important phase of its growth,” CEO Colin Padget says.
“Gold Fields’ decision to increase its strategic investment to approximately 19.9% of the company is a powerful endorsement of Antino’s potential and our team’s ability to unlock it.”
Following the transaction, Nana will hold approximately 10.6% of Founders’ outstanding shares.
Both transactions are subject to TSX Venture Exchange (TSX-V) approval and expected to close on or about 4 September.
Founders Metals is a Canadian gold exploration company, focused on advancing district-scale opportunities in the Guiana Shield of Suriname.
Write to JC Villarba at Mining.com.au
Images: Founders Metals
