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Renaissance Gold completes option of Silicon project, Nevada to major AngloGold Ashanti

AngloGold has told the firm it will make the final payment of US$2.4 million to complete the option by June 21 this year

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It means AngloGold will have bought 100% of the project by paying RenGold a total of US$3 million within three years

Renaissance Gold Inc (CVE:REN) (OTCQB:RNSGF) has successfully optioned out its Silicon project in Nevada to mining major AngloGold Ashanti (NYSE:AU).

The latter has told the firm it will make the final payment of US$2.4 million to complete the option by June 21 this year.

READ: Renaissance Gold acquires unpatented mining claims comprising Elba project in Nevada

It means AngloGold will have bought 100% of the project by paying RenGold a total of US$3 million within three years.

RenGold will retain a 1% net smelter royalty (NSR) within a defined area of interest (AOI) covering around 15,000 acres.

"We are very pleased that AngloGold has received enough encouragement from their drilling to date to elect to complete the option and make the final payment to RenGold," said Robert Felder, CEO at RenGold, in a statement.

"The payment is very meaningful to the company and the royalty represents significant future value as well. We look forward to seeing the advancement of this project in this exciting and quickly evolving district in Nevada."

Felder added that the payment "significantly" strengthened the company's treasury.

"Building on our knowledge of the Silicon project, we have recently acquired an additional 4,000 acres in two new epithermal projects in Nevada, and plan to utilize the payment to continue an aggressive exploration program that could potentially lead to our next discovery," he said.

If approved, AngloGold's plan of operations allows for up to 155 acres of surface disturbance in phased exploration programs, and the proposed phase one program will include up to 109 drill sites within a 3,630 acre project area on unpatented mining claims.

All of the permitted drilling is within the RenGold area of interest.

Renaissance Gold is a western US-focused prospect generator using a joint venture business model.

Shares in Toronto nudged up 4.2% to C$0.37 each.

---Updates for share price---

Contact the author at [email protected]

Quick facts: Renaissance Gold, Inc.

Price: 0.395 CAD

TSX-V:REN
Market: TSX-V
Market Cap: $27.07 m
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