Merah Resources (ASX:MEH) has finalised all conditions precedent under the Heads of Agreement with Castle Minerals (ASX:CDT) to secure an option to acquire Castle's Antubia gold tenements in Ghana.
Merah will make cash payment of $85,000, with a further payment of $50,000 in 12 months, and issue 2 million shares to Castle's subsidiary Topago Mining as consideration for the option.
Merah shares last traded at $0.15.
The company must also spend a minimum of $250,000 per annum on exploration and will be responsible for meeting the costs of all outgoings with respect to the Antubia tenements until completion of the sale and purchase of the project.
Antubia comprises two contiguous licences with a combined area of 295 square kilometres, located along strike from Newmont Mining’s (NYSE:NEM) 17.7 million ounce Ahafo gold mine.
Three significant but underexplored gold anomalies have been identified, including the 3.5 kilometre long high tenor Boizan target area.
Shallow drilling at Boizan demonstrated the presence of near surface gold mineralisation, intersecting up to 18 metres at 2.74 grams per tonne.
The Antubia mine located within the project is one of the largest colonial gold mines in Ghana, having reportedly produced 18,690 ounces between 1912 and 1939.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.