RTG Mining (ASX:RTG, TSX:RTG) announced that it acquired a 90% stake in the high-grade Chanach gold and copper project in the Kyrgyz Republic.
In a press release, the miner said the deal represents an acquisition cost of $3.65/ Au resource ounce and $0.0063/ Cu resource ounce with the limited exploration activities to date having defined an Inferred Mineral Resource of 2.95 Mt @ 5.11 g/t Au for 484,000 ounces of Au and 17.23 Mt @ 0.37% Cu for 64,000t of Cu.
RTG plans to undertake a drilling program in November 2019, coinciding with the end of the exploration field season in Kyrgyzstan
In the brief, RTG explained that management agreed to acquire the majority stake in Chanach through the acquisition of 100% of Malaysia’s PB Partners, a wholly-owned subsidiary of White Cliff Minerals.
To go ahead with the deal, RTG agreed to pay $2.15 million and issue $0.5 million in new RTG shares at a price equal to the 5-day VWAP of the RTG shares on the ASX for the five trading days leading up to completion of the transaction.
“RTG is now the manager and operator of the Chanach project Joint Venture company and will solely fund operating expenditures until completion of a Bankable Feasibility Study at which time, funding will then be contributed on a pro-rata basis,” the company said in the media statement.
The Chanach project area is considered to be prospective for epithermal gold, porphyry copper-gold and polymetallic skarn deposits with numerous targets already identified.