LOI to Acquire Gold Portfolio

Nexus Gold Corp announces that it has entered into a letter of intent (LoI) with Aurem Resources SARL, an arms'-length party, pursuant to which it will look to acquire the rights to any or all of three exploration permits, totaling up to 4,102 square kilometers (over 1,500-sq miles), located in Gabon, West Africa. If completed, the Permits would form part of the Company's existing portfolio of exploration stage gold projects in West Africa.

 

The project portfolio consists of three different concessions, each encompassing between 1,200 and 1,500-sq kms, in Gabon, which is located on the west coast of Africa and is serviced by excellent infrastructure including a deep-water port at the capital city of Libreville. The projects are ideally located within 300 km of Libreville. The permits pursuant to this LoI are currently under application and the Company anticipates they will be issued shortly. Gabon has a proven investor friendly environment with a large oil and gas industry being present over several decades and is considered underexplored for precious metal deposits compared to other countries in the region.

 

Throughout the concession areas gold mineralization appears to have strong structural controls, concentrating along lithological contacts and structural breaks. Two styles of gold mineralization have been observed: A pyrite-rich massive sulphide sitting at the contact of a deformed mafic volcano-sedimentary sequence and a thick black shale unit.

 

"The ground under consideration by Nexus in Gabon is a very large area that is highly prospective for gold," said Ian Stalker, non-executive Chairman. "Previous work by earlier operators has indicated the potential for high-grade resources, and indeed the work done previously is an excellent starting point for us, saving the Company millions of dollars of upfront expenditures.”

 

Gabon itself is a very stable environment in which to work and has had little recent geological work undertaken. We feel it offers the Company a strong opportunity to be at the forefront of the development of a potentially new and exciting gold province," continued Mr. Stalker.

 

"The historical work and regional data we have examined so far is compelling," said Alex Klenman, president & CEO. "We are eager to dive more vigorously into the due diligence process here and acquire as much data on the concessions as possible. This is very much a district-scale opportunity for Nexus.

 

Land packages of this size with exploration upside don't come along every day. With the gold price showing significant strength recently and the potential to reach even greater levels in the near future, an acquisition of this type and scale has the ability to add substantial value," continued Mr. Klenman.

 

The Company intends to conduct a due diligence review of the Permits, following which the board of directors will make a decision as to whether to proceed with the acquisition and will finalize definitive terms with Aurem.

 

  • LOI to Acquire Gold Portfolio