Announcement to the Australian Securities Exchange and Toronto Stock Exchange
SUBIACO, WESTERN AUSTRALIA / ACCESSWIRE / September 5, 2019 / RTG Mining Inc. (ASX:RTG)(RTG.TO )(OTCQB:RTGGF ) (“RTG” or “the Company”) is pleased to announce that it has entered into a Sale and Purchase Agreement (“SPA”) with White Cliff Minerals Limited (“WCN”) to acquire its majority (90%) stake in the high grade Chanach Gold and Copper Project (“Chanach Project”) in the Kyrgyz Republic (“Transaction”).
Highlights of the Transaction include:
Strategic addition to RTG’s portfolio with an existing high grade JORC compliant 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 Cu1 ( 141.1 Mlbs Cu) from only limited drilling to date. Acquisition cost of US$3.65 / ounce of Gold and US$0.0063 / pound of Copper. Consideration of US$2.15 million cash and US$0.5m in RTG shares (escrowed for 12 months). Transaction subject to WCN shareholder approval with a target completion date of mid to late October 2019. Unanimous WCN board recommendation and shareholder support statements from 20% of WCN’s shareholders to vote in favour of the Transaction (both in the absence of a superior proposal). Experienced technical expert, advising RTG, believes the exploration potential at the Chanach Project is excellent. The Chanach Project is located in the prolific southern Tien Shan metallogenic belt, which runs more than 1,500 km from Uzbekistan through to China and hosts one of the world’s largest open pit gold mines, Murantau (175 Moz2 ) with production believed to be in the order of 2 million ounces per annum2 . RTG have appointed Mr. Greg Hall of Phoenix Gold International and former Chief Geologist for Placer Dome, as a consultant given his knowledge of the Chanach Project and other projects in similar geological settings.
The Chanach Project has extensive outcropping mineralised geology with high grade gold veins from surface and significant gold and copper Inferred Mineral Resources. With only 5% of the identified strike length tested to date, RTG believes the Chanach Project has substantial upside. The Chanach Project area is considered to be highly prospective for world class epithermal gold, porphyry copper-gold and polymetallic skarn deposits with numerous targets already identified.
To date the limited exploration activities have 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 Cu1 .