Trans-Siberian Gold (TSG-L) recently reported that they will be selling shares in their company to Anglogold Ashanti to give Anglogold a 29.9% stake in the company.
Two lots of shares, totaling some 6.1 million shares each, will be sold to Anglogold for 1.3695 and 1.494 per share respectively, for a total investment of 17.6 million.
The deal is dependent upon shareholder-approval; a vote on various resolutions will be made at an annual general meeting scheduled for July 27. After the first subscription two Anglogold nominees will be appointed to the Trans-Siberian board. The companies have negotiated a consultancy agreement, as well as an option agreement that will allow Anglogold to earn up to 51% in any of Trans-Siberian’s new exploration or mining projects. The second share subscription is subject to the Standard Bank of London’s arrangement of financing for the Asacha mine. Up to $30 million in loan financing is required; due diligence and credit approvals are underway.
The Asacha deposit in Kamchatka, central Siberia, was the focus of a bankable feasibility study completed in March. A resource estimate completed in January stood at a measured and indicated 723,000 tonnes grading 22.68 grams gold and 32.82 grams silver per tonne, for a total of 527,000 oz. contained gold and 1 million oz. contained silver. In addition the inferred resource is 238,000 tonnes grading 17.25 grams gold and 47.37 grams silver per tonne. The cutoff was 6 grams gold-equivalent per tonne and the gold-equivalent ratio was 1 gold:75 silver.
The Rodnikova deposit, about 60 km north of Asacha, is planned to be mined as a satellite ore body to Asacha. Rodnikova contains an indicated resource of 443,000 tonnes grading 8.6 grams gold and 89.2 grams silver per tonne for a total 122,000 contained oz. gold and 1.27 million oz. silver. In addition there is an inferred 331,000 tonnes grading 7.9 grams gold and 78.8 grams silver per tonne. The cutoff grade used in this calculation was 4.5 grams per tonne.
The Asacha deposit comprises narrow steeply dipping vein systems, with minor sulphides. Tests have determined that 95% of the ore is amenable to direct cyanidation. The Rodnikova deposit has similar geology.
Trans-Siberian Gold holds a 90.05% interest in Trevoznhoe-Zarevo, a company that holds the mining and exploration licenses that cover both the Asacha and Rodnikova deposits. Trans-Siberian will pay US$1 million for the remaining 9.95% interest once a positive development decision has been made for Asacha.