Alicanto Minerals Ltd (ASX:AQI) has banked C$700,000 after selling its Arakaka Gold Project to Virgin Gold Corporation in a deal worth up to C$4.75 million.
The multi-element explorer agreed to sell the gold play in June 2021 to focus on work across its Greater Falun copper-gold-silver-zinc-lead and Sala silver-zinc-lead projects in Sweden.
Virgin Gold put down a C$50,000 deposit to kick off the deal and has now paid the C$700,000 cash consideration to complete the sale.
In addition, Alicanto can earn up to C$4 million in Goldblock common shares, subject to Virgin establishing NI43-101 compliant resources on the Arakaka Project in the two years following completion.
The fine print
In the lead up to today, both parties had to cross the T’s and dot the I’s on a number of conditions to complete the sale.
Primarily, Virgin Gold needed to execute due diligence on the Arakaka project and obtain any necessary third party consents.
It was also required to complete a reverse takeover of Goldblock Capital Inc., an entity listed on the Canadian Stock Exchange (CSE), and procure that Goldblock Capital complete a capital raising of no less than C$5 million.
Virgin Gold expects to complete its reverse takeover of Goldblock Capital Corp and subsequent listing on the CSE in February 2022.
About Alicanto
Alicanto Minerals is pursuing an aggressive exploration campaign in Sweden’s highly regarded Bergslagen mining region.
The first of these is targeting extensions of the historic Sala silver-zinc-lead deposit and the second involves greenfields exploration around the Greater Falun copper-gold and polymetallic skarn project.
Overall, the company is on a mission to create shareholder value by discovering, growing and developing precious and base metal resources in a tier-one location.
The strategy is driven by a board and management team comprising a broad range of expertise, including extensive technical, operational, financial and commercial skills.
Alicanto’s leadership also bears experience in mining exploration, strategy, venture capital, acquisitions and corporate finance.