Perth-based Adamus Resources Ltd's share price rose 3 per cent today after the company announced its due diligence on the acquisition of the Anwia South gold project in West Africa had been completed.
Perth-based Adamus Resources Ltd's share price rose 3 per cent today after the company announced its due diligence on the acquisition of the Anwia South gold project in West Africa had been completed.
The company has signed a formal agreement in accordance with the letter of agreement signed in January 2006 and made its first cash payment of US$375,000 (A$520,000).
Under the terms of agreement, Adamus will acquire 100 per cent of the Anwia South Project, through the acquisition of Nkroful Mining Ltd, in consideration for a further cash payment of US$375,000 (A$520,000) on completion and the issue of 3,665,000 Adamus shares at completion, 50 per cent of which will be held in escrow for four months and the remaining 50 per cent subject to an eight month escrow period.
At market close, Adamus' share price was up 3 cents to $1.
Below is the edited announcement:
The Directors of Adamus Resources are pleased to announce that the Company has
completed its technical, legal and financial due diligence on the acquisition of the
Anwia South gold project. In accordance with the letter of agreement signed in
January 2006 the Company has now signed a formal agreement and made a cash
payment of US$375,000 being the first payment required under the terms of the
acquisition.
Following completion of the acquisition ("Completion"), which is subject to receipt of
necessary regulatory approvals, Adamus will own 100% of the Anwia South Project
and increase its overall tenement holding by 20%.
The Company believes the Anwia South project has the potential to add significant,
high grade resource ounces, to the Company's fast growing Southern Ashanti Gold
Project, which already has a resource base of 22Mt @ 2.1g/t for 1,500,000 oz gold.
The Anwia South Project is contiguous to Adamus' Anwia Deposit, contains consistent
high grade gold mineralization, is significantly under-explored and encompasses over
80 square kilometres of highly prospective tenure.
ANWIA SOUTH PROJECT - HIGHLIGHTS
Tenure covering 80 square kilometres, bordering both the southern and western
boundaries of Adamus' Anwia Project.
Contains high grade mineralization including drill intersections of 6m @ 148g/t, 5m
@ 71.7g/t and 14m @ 10.1g/t gold.extending over 350m of strike with mineralization remaining open both along strike and down dip.Both historic and recent work completed by Adamus suggests gold mineralization
is free milling in nature with cyanide leach tests on RC chips returning approximately 95% recovery.
Is extremely well located with the Atom prospect situated only 3km south of the
Anwia Deposit and 10km southwest of the Salman Deposit.
Previous diamond and RC drilling has already defined multiple west-dipping lodes
(see attached Plans) at the Atom prospect and highlighting the potential for
additional discoveries throughout the broader project.
TERMS OF AGREEMENT
Adamus will acquire 100% of the issued capital in Nkroful Mining, including all rights, licenses and interests
in the Anwia South Project, in consideration for:
a cash payment of US$750,000, to be paid as follows:
- US$375,000 on signing a formal acquisition agreement and the completion of due diligence;
and
- US$375,000 on completion.
the issue, at Completion, of 3,665,000 fully paid ordinary shares in Adamus, 50% of which will be
held in escrow for four months and the remaining 50% subject to an eight month escrow period.
Following receipt of pre-requisite Ministerial approvals in Ghana, Adamus will commence a comprehensive drill program involving both infill and extensional drilling at the Atom prospect as well as exploration drilling targeting a number of other prospects.
The Directors of Adamus believe the Anwia South acquisition provides an excellent opportunity for the Company to add significant economic value to the broader Southern Ashanti Gold Project.
