IronRidge Resources Limited (LON:IRR) is poised to take full control of Tekton Minerals, which has a number of potentially high grade gold targets in Chad.
The fast growing junior acquired an option for a 58% stake last year for US$3.5mln, since when its holding has risen to 64%.
This latest deal covers all but 10% of the shares outstanding and will see IronRidge issues shares to Tekton’s shareholders, which includes two of IronRidge's directors, Nicholas Mather and Vincent Mascolo.
WATCH: Full control of Tekton Minerals 'a spectacular acquisition', says IronRidge CEO
They have agreed but for the deal to go through, IronRidge also needs the remaining 10% to sell.
Tekton’s licences cover 1000 sq km in the Ouaddaï Province in Chad.
Three highly prospective gold mineralised areas and one advanced exploration target have been defined over the Dorothe, Echbara and Am Ouchar licences.
Additionally, two reconnaissance licences have been awarded over the Adé and Nabagay targets.
Trenching and soil sampling work has just been completed at Dorothe and Echbara, which will be sent for analysis shortly. New artisanal mining sites recently discovered show ubiquitous visible gold, it added.
Once the deal completes, Tekton's technical and logistics team will join IronRidge.
Vincent Mascolo, IronRidge chief executive, said the Chad portfolio had high-grade gold targets but was underexplored and potentially analogous to the world class Tintina Province in the Alaska and Yukon Territory.
"The size and extent of artisanal gold workings and the ubiquitous occurrence of free, visible gold endorse our strategy.
"The Tekton team offers extensive francophone exploration, logistics and government relations expertise gained throughout West and Central Africa, providing valuable synergies with the IronRidge team and its growth strategy.”
In reaction to today's news, Ironridge shares were nearly 3%, or 1.0p higher at 34.75p.
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