Rouyn-Noranda junior company secures potential 250,600 ounces of gold
The transaction was announced on August 10. The two parties have signed a letter of understanding under which Radisson will acquire 100% of the New Alger project as well as 9.6% of the shares of Renforth. The potential value of the transaction for Renforth has been assessed at $ 9.5 million. "The purpose of the transaction is to create regional synergy within one of the most prolific mining camps in the world," Radisson said in a statement.
For the Rouyn-Noranda junior company, the acquisition of New Alger will significantly increase the scale of its O’Brien project, which should, at the same time, attract more investor interest. At a cut-off grade of 7 grams of gold per tonne, the most recent resource calculation for O’Brien, dated July 2019, gives a potential of 212,800 ounces of gold indicated and 75,900 inferred ounces. This calculation is however the most conservative. The more optimistic one, based on a cut-off grade of 3 grams of gold per tonne, gives resources in the order of 408,700 ounces of gold indicated and 255,000 ounces of gold. As for New Alger, data released in May 2020 by Renforth pointed to a potential 62,600 ounces of gold indicated and 188,000 ounces of gold.
With regard to Renforth, the strengthening of its financial balance sheet should allow it to increase its exploration activities at its other properties in Abitibi, notably at the Parbec project. Located northwest of Malartic, this project, considered a small surface mine, currently has a potential of 104,500 ounces of gold indicated and 177,300 ounces of gold.
"We believe this transaction establishes a win-win situation for both companies," said native of Amsterdam Mario Bouchard, Managing Director of Radisson. We look forward to being able to build on the work completed by Renforth in New Algiers while establishing exposure for our shareholders to our partner's entire portfolio of assets. "
“Renforth is now very well funded to continue exploration on several of our properties,” commented Company CEO Nicole Brewster. For a considerable future period, we will no longer need to put in place additional dilutive financing, which is transformative for our company. "