Business
RTG Completes Acquisition of 90% Stake in the High Grade Chanach Gold Project in the Kyrgyz Republic
ANNOUNCEMENT TO THE AUSTRALIAN SECURITIES EXCHANGE, TORONTO STOCK EXCHANGE AND OTCQB SUB...
About this update from Rtg Mining, Inc.
[{"type":"text","content":"RTG Completes Acquisition of 90% Stake in the High Grade Chanach Gold Project in the Kyrgyz RepublicANNOUNCEMENT TO THE AUSTRALIAN SECURITIES EXCHANGE, TORONTO STOCK EXCHANGE AND OTCQBSUBIACO, WESTERN AUSTRALIA / ACCESSWIRE / October 23, 2019 / RTG Mining Inc. (ASX:RTG, TSX:RTG, OTCQB:RTGGF) (\"RTG\" or \"the Company\") is pleased to announce that the Company has completed the acquisition of the majority (90%) stake in the high grade Chanach Gold and Copper Project (\"Chanach Project\") in the Kyrgyz Republic (\"Transaction\") previously announced on 6 September 2019[1]. The deal represents an acquisition cost of only US$3.65/ Au resource ounce and US$0.0063/ Cu resource ounce with the limited exploration activities to date having defined an Inferred Mineral Resource of 2.95 Mt @ 5.11 g/t Au for 484,000 ounces of Au and 17.23 Mt @ 0.37% Cu for 64,000t of Cu[2].The Company agreed to acquire a 90% interest in the Chanach Project through the acquisition of 100% of PB Partners (Malaysia) Pte Ltd, a wholly owned subsidiary of White Cliff Minerals Ltd (\"WCN\"). As required under Chapter 11.2 of the ASX Listing Rules, WCN shareholder approval for the disposal of the Chanach Project was provided at a WCN general meeting held on 15 October 2019. Subsequent to WCN shareholder approval, RTG has settled its Transaction payment obligations consisting of: (i) cash consideration of US$2.15 million: and (ii) US$0.5 million in new RTG shares issued at a price equal to the 5-day VWAP of the RTG shares on the ASX for the 5 trading days leading up to completion of the Transaction (10,312,577)[3]. The new RTG shares were issued at a deemed price of A$0.071 per share under the Company's Listing Rule 7.1 capacity and will be escrowed for a period of 12 months from the date of issue.RTG is now the manager and operator of the Chanach Project Joint Venture company (Chanach LLC) and will solely fund operating expenditures until completion of a Bankable Feasibility Study at which time, funding will then be contributed on a pro-rata basis in accordance with Chanach Project interests.We refer shareholders to the announcement of the deal dated 6 September 2019 which provides a more detailed overview of the Chanach Project, where both we, and our consultant Mr Greg Hall, former Chief Geologist of Placer Dome, believe the exploration potential is excellent, wi...