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Gold Fields to add stake in Founders Metals, aiding Antino buyout
The investment will help Founders acquire Nana Resources’ 30% interest in the Lawa Gold assets for $17 million in cash plus shares and milestone payments.
Gold Fields is investing an additional $55.7 million into Suriname explorer Founders Metals, increasing its stake to just under 20% and supporting a buyout of local partner Nana Resources tied to the Antino gold project, Mining.com reports.
The agreement enables Founders to purchase Nana’s 30% interest in Lawa Gold, which controls the Antino mineral rights and infrastructure. The cash component is $17 million, with 13.6 million shares issued, and up to $21 million in milestone payments.
With the consolidation of all of Lawa Gold, Founders will gain control of the entire 1,024-square-kilometer Antino district on a royalty-free basis. The company is also running a fully funded 70,000-metre drill program this year, and has not yet published an initial resource for Antino.
Gold Fields will buy 14.1 million Founders shares at $5.44 apiece, using a price based on a five-day volume-weighted average through Monday. Shares in Founders rose 5.7% to C$6.08 in Toronto on Wednesday morning, valuing the company at C$703 million.
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