7 November 2016
NZX Market Announcement
Aorere Resources Limited extends option to acquire Nevada gold assets
In May 2016, Nevada Gold Limited (a wholly owned subsidiary of AOR) (NGL) entered into a conditional term sheet securing the exclusive right to acquire American Innovative Minerals LLC (AIM) of Nevada, USA for US$2 million.
AIM holds the rights to the Fondaway Canyon Gold Project (the Fondaway Project), as well as a number of other advanced and early stage mining and exploration projects. The purchase of AIM was conditional upon the following:
(a) Due diligence: NGL carrying out a due diligence assessment of AIM to the satisfaction of its board; and
(b) Finance: NGL securing financing of US$3 million to satisfy both the US$2 million purchase price and AIM’s immediate working capital requirements.
NGL secured exclusivity until 31 October 2016 to acquire AIM (subject to the conditions noted above). Further details regarding AIM and the Fondaway Project were released to market on 16 and 26 May 2016 and are available on Aorere’s website: www.aorereresources.co.nz.”
AOR is pleased to advise that the exclusivity period has now been extended to 30 November 2016 with a view to the acquisition being completed on or before that date. While the above conditions remain outstanding, the due diligence assessment is virtually complete and steady progress is being made toward securing the funding required to satisfy the finance condition.
AOR will update the market on the transaction further in due course.