The Sela Creek agreement grants a 2% net smelter return (NSR) royalty to the optionor. Credit: assistant/Shutterstock.

Miata Metals has signed an option agreement with an undisclosed registered owner (optionor) of the Sela Creek gold project in Suriname to gain complete ownership of the project.

This move comes as part of the company’s strategy to consolidate its position in Suriname’s gold exploration sector following its definitive agreement to acquire 79North and its Nassau gold project.

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The Sela Creek Agreement outlines a structured payment and work expenditure plan for Miata Metals, including initial cash payments and common share issuances to the optionor.

Additionally, it stipulates a work commitment of $2m (C$2.69m) over the next three years, with additional cash payments and share issuances at each milestone.

The Sela Creek Agreement also grants a 2% NSR royalty to the optionor on gold sales, with Miata retaining the right to purchase portions of this royalty.

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Miata will take over as the operator of Sela Creek project, with the optionor allowed to continue limited alluvial and surface operations, ensuring no interference with Miata’s exploration activities.

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Miata CEO Jacob Verbaas said: “Following the execution of a definitive agreement to acquire 79North, Miata is pleased to announce this significant milestone in consolidating its ownership in this prospective Guiana Shield property.

“Sela Creek has extensive surficial mining and serves as an excellent analogue to other successful discoveries within Suriname.

“We see a clear path to proving out a potentially substantial discovery on this property, and as such it was a high priority to renegotiate the ownership structure to give Miata a path to outright ownership of the property. Work has already begun to plan an initial drill programme, and we look forward to starting this next chapter as a leading gold exploration company in Suriname.”