Augusta Gold Drops US$45 Million On “Shovel Ready” Oxide Gold Project In Nevada
Augusta Gold (TSX: G) this morning announced it’ll be opening up its pocketbook to acquire a new property. The property, referred to as the Reward Project, is found just seven miles from the firms Bullfrog Project in Nevada.
On a combined basis, the project is to be acquired for $45.0 million in both cash and stock from Waterton Nevada Splitter LLC. $12.5 million in cash is to be paid at the time of closing, while a further $17.5 million in cash is to be paid within 90 days of closing, with the figure to be personally backstopped by company Chairman Richard Warke.
$15.0 million will also be paid in the form of shares, of which 7.8 million are to be issued on closing, and the remainder at the time of the firms next financing. The delay in share based payment is believed to be a means of Waterton avoiding owning in excess of 9.99% of the company.
The Reward property is framed as being a “shovel-ready” project with low-risk attached to it. The oxide gold project currently has a historical resource estimate of 416,800 gold ounces on a measured and indicated basis at 0.75 g/t gold, as well as a historical proven and probably reserve estimate of 377,000 ounces of gold at 0.82 g/t. Notably, the project has obtained the required permits to proceed with construction of the project, with the historical estimate dated September 6, 2019.
In terms of development, Augusta intends to update the historical estimates immediately, with the development of the project to proceed thereafter. “Once we have updated past studies, we anticipate that the Reward Project will be a shovel ready, low-risk oxide gold project in close proximity to our Bullfrog Project that will enable the Company to be a near-term producer while we complete the permitting process at Bullfrog,” said CEO Don Taylor on the property.
Augusta Gold last traded at $1.85 on the TSX.
Information for this briefing was found via Sedar and Augusta Gold. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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