Alba takes full ownership of highly prospective Clogau Gold Project
() saw its shares jump after it agreed to take 100% ownership of the Clogau Gold Project in Wales.
Exploratory drilling in 2020 and 2021 saw the mining explorer identify a number of highly prospective gold targets within the country’s Dolgellau Gold Belt within a total option area of 106.94 square km.
The company also agreed to buy back a 3% net smelter return royalty owned by the vendor which will reduce its royalty to 1%. Alba will issue 200 million shares at 0.2p each to fund the purchase, a 25% premium to the closing price on 22 August, as well as 81,930,830 two-year share warrants with an exercise price of 0.4p per share.
It also said that it had made progress with further ecological surveying/data generation to develop its plan to dewater Llechfraith Shaft at Clogau Gold Mine, and had also extended it Limerick Base Metals Project licence renewed for a further two years.
Alba's executive chairman George Frangeskides commented: "It is a measure of our confidence in the long-term prospects for the Clogau Gold Project that we have taken the opportunity to move to 100% ownership of the Project…acquiring both the free carried interest as well as 75% of the royalty greatly improves the economic viability of the Project for Alba.”
“At the same time, any concerns regarding the market impact of the issue of Alba shares has been addressed by a lock-up of the consideration shares for six months plus a further six-month orderly marketing restriction.”
Separately, the company noted progress made by investee company () with drilling at its Amitsoq graphite project in Greenland. Alba holds a majority 54% interest in Greenroc. We spoke to Greenroc’s chief executive Stefan Bernstein about the latest developments, which you can listen to here.
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