Antler Gold Namibia, a subsidiary of Antler Gold, has entered into a binding letter of intent (LOI) with Fortress Asset Management to sell its interest in the Erongo Central Gold Project.
The LOI includes a total consideration of US$ 5.5 million (N$101.64 million) and exploration expenditures of US$ 6 million (N$110.88 million).
Antler Gold Namibia’s parent company, Antler Gold Inc. will also receive a 2% net smelter return (NSR) on the project.
CEO Christopher Drysdale said Fortress Asset Management will make an initial cash payment of $25,000 (N$462,000) upon signing the LOI and another $25,000 (N$462,000) after the definitive option agreement is signed in 45 days.
Fortress will issue $2 million (N$36.96 million) in shares upon listing on an international stock exchange.
One year after the definitive option agreement, Fortress must pay $250,000 (N$4.62 million) in cash and invest $1 million (N$18.48 million) in exploration to earn a 60% interest.
At the 24-month mark, Fortress must provide an additional $500,000 (N$9.24 million) in cash, $1 million (N$18.48 million) in shares, and $2 million (N$36.96 million) for exploration to increase its interest to 80%.
To acquire a full 100% interest by the 36-month mark, Fortress must pay $700,000 (N$12.936 million) in cash, issue another $1 million (N$18.48 million) in shares, and spend $3 million (N$55.44 million) on exploration.
During the option period, Antler will serve as the operator and charge a 10% management fee on project expenditures.
The Erongo Gold Project includes four active Exclusive Prospecting Licenses (EPLs 6162, 7261, 6408, 8010) and one application (EPL 9534), covering 19,514.44 hectares (~195 km2) in the South Central Zone of the Damara Belt.
The project is near the 3.2 Moz Twin Hills Gold Project (Osino Resources-Yintai Gold Corp.) and QKR’s Navachab Gold Mine.
