Antler Gold Inc. has sold 80% of its Erongo Central Gold Project interest to Fortress Asset Management.
The 19.514-hectare Erongo Gold Project comprises four active EPLs, 6162, 7261, 6408, and 8010, and one application for EPL 9534.
The companies had initially agreed that Fortress Asset Management would acquire up to a 100% equity interest in the project in three stages over three years for US$5.5 million.
In addition, Fortress Asset Management was required to incur US$6 million of exploration expenditures on the project.
The agreement was initially announced on May 23, 2024, and amended on May 24, 2024, August 22, 2024, and September 18, 2024.
The amending agreement, dated December 5, 2024, transitions the transaction from the original earn-in structure to an outright sale of 80% interest for US$800,000 in cash within 10 business days of an entity controlled by Fortress becoming publicly listed.
Antler Gold will also receive C$4.11 million in FortressCo’s shares before it becomes publicly listed.
Fortress Asset Management has already paid US$50,000 under the terms of the agreement.
Fortress Asset Management retains the right to acquire the remaining 20% equity interest on or before the third anniversary of FortressCo becoming publicly listed for US$1.7 million.
At least 50% of the US$1.7 million is payable in cash and the remainder in shares of FortressCo.
Antler Gold will retain a 2% net smelter return royalty on the project with no buyback provisions.
Antler will remain the project operator for 24 months following the transaction, ensuring operational continuity and effective project execution.
As required under TSX-V policies, the amended transaction is subject to shareholder approval. Antler will seek written consent from shareholders representing at least 50% + 1 of its issued and outstanding capital.
The amended transaction is also subject to TSX-V and Namibian regulatory approvals.
The project is in the South Central Zone of the Damara Belt and strategically located in a mining district contiguous to the 3.2 Moz Twin Hills Gold Project (Osino Resources-Yintai Gold Corp.) and QKR’s Navachab Gold Mine.
Antler Gold’s initial exploration in 2021 confirmed the project’s potential, yielding assay results of high-grade gold, including 80 g/t Au, 6 g/t Au, 5.4 g/t Au, and 4.45 g/t Au.
Antler has also conducted detailed geological mapping on areas with outcrop and known mineralisation and a high-definition heliborne geophysical survey of 4,956 line kilometres over the entire project area to obtain high-resolution geophysical data (magnetic and radiometric) for target generation.
Antler has also conducted 91 km of induced Polarisation geophysical surveys; 2,861 m of reverse circulation drilling, which intersected favourable geological units, alteration assemblages, and precious metal mineralisation (1.2% Cu over 40 m (29–69 m) and 11.2 g/t Ag over 42 m (27–69 m) in hole C1L14-4-3B, and 1.5 g/t Au over 11 m (11–22 m) in hole C1L14-4-3); and 6,557 soil and calcrete samples.
In February 2024, Antler Gold’s CEO Christopher Drysdale said the company intended to find a suitable partner to progress the Paresis Gold Project through an earn-in or similar agreement to maximise future discovery benefits for shareholders.
