MTM and its local partner possess rights to gold prospecting licences in the Magisterial District of Molopo. Credit: Phawat via Shutterstock.com.

Avanti Gold, a mineral exploration company, has announced a share exchange agreement with privately held arms-length company MTM and its shareholders.

As per the agreement, Avanti Gold proposes to acquire all issued and outstanding share capital of MTM. This move will see Avanti issuing 29 million of its common shares to MTM’s shareholders.

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The shares issued by Avanti Gold will be subject to a five-month resale restriction, in addition to any applicable securities law limitations.

Avanti Gold has clarified that this transaction will not lead to a fundamental change within the company nor alter its control.

The completion of this transaction is contingent upon receiving regulatory approvals and the provision of customary closing documents.

MTM, in partnership with a local entity, possesses rights to gold prospecting licences in South Africa’s Magisterial District of Molopo, covering an area of 90 hectares within the Kraaipan Granite-Greenstone Belt.

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The acquisition is poised to enhance Avanti Gold’s asset base in the Kraaipan Greenstone Belt, a region in Botswana known for its mining potential.

Avanti Gold is concurrently developing the Misisi Gold project in the Democratic Republic of Congo (DRC), which spans 133km² along the Kibara Gold Belt.

In December 2023, Avanti Gold formalised a profit-sharing and cooperation agreement with Sycomines, the licensed artisanal gold mining association operating within Avanti Gold’s project areas.

This partnership is set to streamline gold production and sales processes, with all gold mined by Sycomines to be sold directly to Primera Gold DRC SA.

Under the agreement, Sycomines will be responsible for all gold mining activities on the Avanti Gold project sites.

The mined gold will then be sold exclusively to Primera Gold, a joint venture (JV) that includes the United Arab Emirates’ Primera Group and the DRC Government.

Primera Gold’s agreement with the DRC Government grants the JV the rights to purchase and export gold mined by artisanal methods.