Mahdia Gold announces land expansion in Omai district
Mahdia Gold Corp says it has started the first phase of the expansion of its land holdings in the Omai/Essequibo River area, which includes its option to acquire 100% of the mineral rights in that area.
In a press release, the Canada-based company said the expansion includes the execution of its option to obtain all the mineral rights represented by 18 medium-scale prospecting permits with a total aggregate surface area of 21,406 acres (Omai Expansion).
The agreement, negotiated with South American Mining Inc, a private Guyana Company, grants the right to explore and, as warranted, convert the rights to mining permits or mining licences and thereafter acquire the entire land holding.
The transaction represents a significant expansion of the boundaries of the company’s current assets in the Omai district and the corresponding exploration and development opportunity, the release said.
Omai Expansion is located in a well-known gold bearing region and will be evaluated as part of the company’s ongoing redevelopment of the Omai prospecting license. “This expands the Company’s land for exploration and mining purposes, by a multiple of almost 4 times to 28,646 acres in the same area,” the release said.
It noted that additional exploration opportunity covers regional geological contacts and gold target in bedrock, oxide/saprolite and alluvial/colluvial environments which the company’s technical team has selected as high priority.
The company’s management expects this expansion of opportunity to provide significant enhancement in shareholder value during the medium and long term development of the district.
Omai Expansion was closed to modern exploration throughout the previous life cycle of Omai and exploration work will be coordinated with optimization of the company’s main holdings without the obligation of minimum exploration expenditures associated with prospecting licences.
According to the release, included in the initial payment of US$50,000, the total consideration for the post option acquisition of 100% of Omai Expansion will be US$1 million and two million shares of Mahdia Gold Corp.