White Cliff Minerals is increasing its ownership of the high grade Chanach Copper-Gold Project in Kyrgyz Republic to 88.7% after exercising its option to acquire T2 Gold’s 32.2% interest. The company will pay $45,000 in cash and issue 73,841,667 shares to T2 to acquire its stake.
This transaction consolidates ownership of two copper-gold deposits including the new Aucu discovery where trenching has returned 7 metres @ 3.83% copper and 30.1 grams/tonne gold and 10 metres @ 1.73% copper. It also reinforces the interest displayed by investors who had oversubscribed for the company’s $1.2 million placement in March this year.
“The key driver behind the transaction is the new Aucu discovery, where the spectacular copper and gold trenching results announced in January show potential to develop a significant tonnage, high grade copper-gold deposit capable of delivering substantial value to White Cliff shareholders,” says White Cliff’s managing director Todd Hibberd.
“The company faced the choice of continuing to earn into Chanach via expenditure of $3 million to move from 56.5% to 70% or to increase ownership directly to 88.7% through the acquisition of T2’s interest for consideration in script and cash at a fraction of that amount.
“The business case for this acquisition is compelling with strong potential for White Cliff to generate significant value from this year’s low cost trenching and drilling program at the high grade Aucu copper-gold discovery. The high impact exploration program at Chanach is scheduled to commence in May.”
The acquisition is subject to approval at a White Cliff shareholder meeting to be held on May 2.
The Chanach project covers 83sqkm and is 350km southwest of the capital Bishkek. It also has good road access and is close to regional mining support hubs. It is within the western part of the highly mineralized Tien Shan Belt which extends for more than 2500km from western Uzbekistan to western China. Major nearby mines include the Terek Sak gold mine, Bozymchak copper, gold and silver mine, and the Ishtamberdy gold mine.