Liberty Metals (ASX:LIB) has secured an option to acquire a 90% interest in two early-stage gold projects in Guyana, supported by a $5 million placement to begin exploration.
The binding four-year agreement covers the Oko North and Oko South Gold Projects, comprising 40 granted medium-scale mining permits across approximately 44,288 acres, or 180km², in the Cuyuni Mining District.
Oko North directly adjoins ground formerly held by G2 Goldfields and now owned by G Mining Ventures (TSX:GMIN). Oko South lies approximately 30km south of the Oko deposits and covers what Liberty interprets as a continuation of the district’s mineralised trend.
Together, the two blocks span approximately 60km of the Oko district.
Non-executive Chairman Nicholas Katris says the acquisition gives Liberty a district-scale position in an emerging gold camp.
“At Oko North we sit directly against the G2 ground, and at Oko South we see the same greenstone-belt rocks and the same structural corridor that host the Oko discoveries continuing south into our ground,” Katris says.
G Mining completed its approximately C$3 billion ($3.05 billion) acquisition of G2 in July, consolidating Oko West and Oko-Ghanie into a 362km² project containing combined measured and indicated resources of seven million ounces (Moz) of gold and inferred resources of 2.3Moz.
However, the neighbouring deposits sit outside Liberty’s tenure, which has no mineral resource or ore reserve. The company cautions that nearby discoveries and interpreted geological similarities do not guarantee exploration success on its ground.
Scheduled payments under the option total up to approximately US$8 million ($11.33 million), with US$5 million due across the third and fourth anniversaries. Liberty has paid US$346,000 to the Guyana Geology and Mines Commission on behalf of the vendor.
A separate milestone payment would become payable upon completion of a Bankable Feasibility Study. It would be calculated at US$15 per economically feasible ounce, rising to US$20 per ounce if gold exceeds US$4,000 per ounce and US$25 per ounce above US$5,000 per ounce, less scheduled payments already made.
Liberty has also received firm commitments to raise $5 million through the issue of two billion shares at $0.0025 each, an 11.3% discount to the 15-day volume-weighted average price.
The company plans to use the funds for data compilation, geological mapping, geochemical sampling, and maiden auger drilling. Initial fieldwork is scheduled to begin in the coming week.
Write to France Pinzon at Mining.com.au
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