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Mining News: Junior grabs 100 percent of Terra, LMS International Tower Hill hopes to rapidly advance Alaska projects in which it formerly shared ownership with AngloGold Ashanti Mining News
International Tower Hill Mines Ltd. June 10 said it has entered into an agreement to acquire all of the interest of AngloGold Ashanti (U.S.A.) Exploration Inc. in the Terra and LMS projects in Alaska, plus certain other AngloGold rights, in exchange for 450,000 shares of the Vancouver, B.C.-based junior’s stock.
Based on current share prices, the deal was valued at about $6 per ounce of International Tower Hill’s inferred gold resource and valued at about C$751,500, or C$1.67 a share. The purchase agreement covers all royalties and residual rights held by AngloGold in the Terra and LMS properties.
The acquisition, when completed, will add 134,000 ounces of inferred gold resources from the Terra and LMS projects to International Tower Hill’s account. That amount was calculated as 40 percent of the 167,000 inferred gold ounces at LMS, using 0.30 grams per metric ton gold cut off inferred resource of 5.86 million metric tons at 0.89 g/t gold and 40 percent of the 168,000 inferred gold ounces at Terra, using a 5.0 gold g/t cut off inferred resource of 428,000 metric tons at 12.2 g/t gold.
Given the significant exploration upside for each of these projects, International Tower Hill said it intends to rapidly advance them either on a 100 percent basis or via strategic, production focused partnerships.
Pact covers rights to West Pogo, Gilles Under terms of the purchase agreement dated June 6 between AngloGold and Talon Gold Alaska, Inc., an International Tower Hill subsidiary, Talon Gold will acquire all of the right, title and interest of AngloGold in the Terra and LMS projects, including AngloGold’s right of first offer on any disposition by Talon.
Outcropping gold veins were first discovered at Terra in the late 1990s by Kennecott Exploration. The claims were transferred to Mr. B Porterfield in 2000 and AngloGold optioned those claims in 2004 and staked additional acreage in the vicinity. The company entered a joint venture on Terra with International Tower Hill in 2006.
AngloGold discovered the LMS project through regional stream silt and follow-up soil geochemistry in 2004 before entering a JV with International Tower Hill.
AngloGold also relinquished its right of first offer on International Tower Hill’s 100-percent-owned projects, West Pogo and Gilles. West Pogo is situated on the western boundary of the Pogo Joint Venture land package held by Teck Cominco Ltd. and Sumitomo and Gilles is located along the Pogo mine road, 25 kilometers, or about 16 miles, southwest of the West Pogo property.
AngloGold currently holds just under 6 million shares of International Tower Hill stock, representing about 15.02 percent, of the outstanding common shares of ITH. When the deal closes, AngloGold’s stake in the junior will jump to nearly 16 percent.
The deal still must be approved by the TSX Venture Exchange, Inc.
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