South Africa’s major mining company Gold Fields Ltd (NYSE: GFI) (FRA: EDGA) has taken a significant interest in a development-stage South American gold project.
Gold Fields just agreed to invest C$50 million into Founders Metals Inc (CVE: FDR) (OTCMKTS: FDMIF) (FRA: 9DL0) and its Antino operation in Suriname. It will solidify the major operator’s status as the top Founders shareholder with a 12 per cent stake.
The deal is expected to close within the next week pending approval from the TSX Venture Exchange.
“With this capital, we are dedicating our full attention to unlocking Antino’s potential — expanding our land position and aggressively advancing regional-scale exploration across multiple high-grade targets,” said Founders chief executive Colin Padget.
B2Gold Corp. (NYSEAMERICAN: BTG) is another notable stakeholder. The mid-tier gold producer boosted its stake in the prospector to 6 per cent in late August. These investments from prominent companies highlight the promising revenue-generating nature of the project, particularly considering current precious metal pricing.
Suriname’s gold mining industry is of great importance for the country. Gold currently accounts for over 60 per cent of the nation’s exports and 15 to 25 per cent of government revenues.
The Merian Gold Mine run by Newmont Suriname and the Rosebel Gold Mine are two of the Latin American state’s top gold producing assets. Chinese major Zijin Mining Group Ord Shs H (OTCMKTS: ZIJMF) (FRA: FJZ) owns a 95 per cent stake in Rosebel while the remainder is held by the government.
“This partnership further underscores Suriname’s potential as an emerging gold jurisdiction globally,” Padget also stated.
Founders signed a binding LOI to acquire a 36,000 hectare exploration concession immediately adjacent to the project at the end of October. This will boost the company’s land position almost three-fold. Rock chip samples on the property have yielded grades as high as 70.9 grams per tonne gold.
The junior is currently engaged with a 60,000-metre drill program at the site with four active drill rigs across multiple targets. It is the most significant to be completed on the property to date.
Historically, only 32,000 metres of drilling has been completed at the project. Antino has yielded over 500,000 gold ounces in previous years from artisanal mining, according to Founders.
Read more: NevGold Expands Gold-Antimony Potential at Limousine Butte in Nevada
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