Newfoundland Discovery (CSE:NEWD) has agreed to acquire Orenoxe Holdings, securing staged earn-in rights over the Ganda Gold–Rare Earth Project in Angola.
Orenoxe holds the right to earn up to a 70% interest in the company that owns Ganda, with an option to increase its stake to 90%. The transaction is subject to Canadian Securities Exchange approval.
Newfoundland Discovery will pay up to US$810,000 ($1.15 million) in cash and issue up to 19 million shares. This includes 9.9 million shares at closing, while a further 9.1 million are conditional on the company spending US$1 million on qualifying exploration within 24 months.
The company says its US$1 million stage one program over 15 months will earn a 51% interest. Its stake would increase to 70% once expenditure reaches US$2 million, with the remaining interest available through a buyout option.
CEO Jeremy Prinsen says linking almost half the consideration shares to exploration expenditure aligns the transaction with progress at the project.
“We have structured this transaction so the vendors win when our shareholders win — most of their paper only issues once a million dollars of exploration is in the ground,” Prinsen says.
The 786km² concession spans parts of the Huambo, Benguela, and Huíla provinces and lies about 80km from the city of Huambo. The project is connected to the Atlantic port of Lobito by the Benguela Railway.
Historical work includes airborne magnetic, radiometric, and hyperspectral surveys, alongside surface geochemistry and field programs. Newfoundland Discovery says the datasets have identified 105 targets, while satellite imagery shows expanding artisanal gold workings across several corridors.
The company says it plans to mobilise an initial two-month prospecting program after the transaction closes. It must complete the US$1 million expenditure commitment, or pay any shortfall in cash, to retain its project interest.
An application to convert Ganda’s prospecting licence into an exploitation licence has been submitted to Angola’s mining authority.
Write to France Pinzon at Mining.com.au
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