Antler Gold has signed a letter of intent to sell its Erongo Central Gold Project to Fortress Asset Management LLC for US$5.5 million.
The 19.514-hectare Erongo Gold Project comprises four active EPLs, 6162, 7261, 6408, and 8010, and one application for EPL 9534.
The companies signed a letter of intent on Thursday, whereby Fortress Asset Management will acquire 100% of the project over three years.
Fortress Asset Management will also incur the US$6 million of exploration expenditure.
In addition, Fortress Asset Management will issue Antler a 2% net smelter return across the entire project.
As defined in the agreement, a Special Purpose Vehicle will be formed at the start of the option period.
Antler will be granted a 2% NSR royalty on the entire project. Following the execution of the agreement, Fortress will prepare the definitive agreement within 30 business days.
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 Circulation drilling, which intersected favourable geological units, alteration assemblages, and precious metals 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
