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Acquires a 50% interest in Advanced, High Grade Copper and Gold Licences in Georgia, with Excellent Production Potential
The Board of Noricum Gold has announced the acquisition of a 50% interest, and operational control, of the 861 km2 Bolnisi Project. The Project which is located in the Republic of Georgia contains multiple, large copper & gold non-JORC resources.
Highlights
· Transaction represents a major transformation for the Company. Total mineral resources (non-JORC, C1, C2 & P1 Soviet Reserves & Resources) for the overall project area are both significant and scalable, comprising:
o 980,000 tonnes of contained copper;
o 6.6 million ounces of gold;
o 22 million ounces of silver.
· Title is secured via a 30 year exploration & mining licence which surrounds an existing operating mine and production facilities (owned by the Company’s joint venture partner) providing immediate access to toll treatment infrastructure;
· Three high priority, drill ready targets within the Bolnisi landholding, each has an existing high grade resource inventory (non-JORC, C1 & C2 Soviet Reserves) including;
o 450,000 tonnes of copper (‘Cu’) (average grade 1.31%)
o 835,000 oz of gold (‘Au’) (average grade 1.16 g/t)
o 20 million ounces of silver (‘Ag’) (average grade 23.71 g/t)
o 22,000 tonnes of lead (‘Pb’) (average grade 1.23%)
o 52,000 tonnes of zinc (‘Zn’) (average grade 2.9%)
o 1.5 million tonnes of Barite (‘BaSO4′) (average grade 27%)
· Short term focus, utilising existing cash reserves, to immediately commence work programmes necessary to increase the resource base whilst at the same time converting the historical non-JORC into JORC compliant resources
o The assessment of short term production opportunities will also be prioritised;
· Acquisition price of £2.6 million satisfied through the issue of 1,299,999,980 new ordinary shares (no cash component) represents significant and immediate accretive value event for shareholders whilst allowing for immediate commencement on work programs utilising existing cash reserves;
· Structured via Noricum Gold’s acquisition of 100% of GMC Investments Limited, which owns 50% of Georgian Copper & Gold Limited, the licence holder;
· Issue of 80,000,000 options to vendors of GMC. The options granted vest on Admission, have an exercise period of 8 months and an exercise price of 0.4 pence per Ordinary Share.
· Structure ensures both the JV partner, Caucasian Mining Group and the Company’s interests are aligned with Shareholders;
· The Company has access to CMG’s extensive in-country expertise and infrastructure within Georgia, including a full geophysics team and a state of the art assay laboratory;
· Noricum Gold is required to spend US$6 million over 2 years on exploration and development, after which CMG is required to contribute or dilute;
· Martyn Churchouse to join the board as Executive Director. Martin has 33 years’ exploration experience in Europe and Africa, mine development, mine feasibility and mine management.
Noricum CEO Greg Kuenzel said, “This acquisition represents a significant transformation for Noricum, from a grass roots explorer into a major resource developer. Being selected to partner in the development of these globally significant deposits is a game changing event for us. Acquiring Bolnisi via an all share transaction ensures the interests of our joint venture partner and those of our shareholders are aligned. At the same time, it exposes our shareholders to an immediate and significant value event. With a 30 year Exploration and Mining Licence, nearby modern and high quality processing infrastructure owned by our partner, and the appointment of a highly experienced executive with a strong understanding of the assets and a background in developing mines, this is a remarkable value-add acquisition, which positions us well for rapid short term growth.
“As part of this strategy, the Company will immediately move to implement a programme aimed at converting the historical resources to JORC compliant resources. I look forward to updating shareholders on our activities in Georgia in coming weeks and months.”
