Orca Gold Inc (CVE:ORG) shares shot up 6% on Wednesday after the company said it snapped up two subsidiaries of Kinross Gold Corporation (TSE:K, NYSE:KGC).
The acquired subsidiaries are located and operate in Côte d'Ivoire, which together own rights to the Morondo and Korokaha North exploration licences, and five exploration licence applications.
The company does not currently have an expected closing date and there is no assurance that the transaction will be completed.
The assets comprise land of 2,268km2 positioned on highly prospective structural trends related to known gold mineralisation and have received little or no exploration so far. The most advanced is Morondo, where a discovery was made by Red Back Mining Inc. in 2010 (best intercept 66m at 1.53g/t). Gold mineralisation has been identified by trenching and 4,284m of shallow reverse circulation drilling over an area of 600m x 200m and is open in all directions. Orca plans to explore this prospect with the aim advancing it to resource status.
Orca shares were up 6.2% at C$0.43 on Wednesday. Kinross shares were flat in New York but down 0.2% at C$5.06 in Toronto.