LCL Resources will divest its Andes gold and Quinchia projects in Colombia to Tiger Gold Corporation as it moves to lock-in its PNG assets.
Tiger Gold will pay $1 million in cash for the two assets, and must complete a transaction to go public on a recognised Canadian stock exchange by December 31, 2025.
LCL will receive an additional $500,000 in cash, as well as a percentage of the share capital that completes the going public transaction, equivalent to $8.5 million in consideration shares.
The transaction is expected to be completed at the end of February 2025.
“This acquisition represents a pivotal moment for Tiger Gold, allowing us to pick up on the great work LCL has done to discover new resources, secure permitting at Miraflores, and continue the de-risking process to unlock the significant opportunity these assets have to develop into one of Colombia’s next producing gold mines,” Tiger Gold president and chief executive officer Robert Vallis said.
“We’re not just acquiring assets; we’re acquiring an experienced team on the ground with a view to establish a productive relationship with the local communities and create substantial value for all stakeholders.”
LCL executive chairman Chris van Wijk said the company is delighted in Tiger Gold’s interest in the assets.
“We look forward to working with the Tiger Gold team to advance the projects and to grow our investment for the future benefit of LCL’s shareholders,” he said.
“This deal is a positive first step in rationalising the company portfolio of assets, bringing a material amount of cash into LCL which will see us well funded to continue low-cost exploration on our PNG assets and further business development activities aimed at generating returns for our shareholders.”
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