Atlantic Gold secures Touquoy Gold agreement with Nova Scotia Mi’kmaq Chiefs

Monday, May 26, 2014 by Proactive Investors

Atlantic Gold‘s (ASX:ATV) subsidiary DDV Gold has concluded an MOU with the Assembly of Nova Scotia Mi’kmaq Chiefs.

This establishes mutual recognition of each party’s perspective in relation to the development of the Touquoy Gold Project and DDV Gold’s other potential resource developments in Nova Scotia, Canada.

Touquoy has compelling metrics, including an estimated pre-production capital costs of $142 million, all-in sustaining cash costs of $622 per ounce, and is expected to produce 84,000 ounces of gold from Ore Reserves of 9.59 million tonnes at 1.48 grams per tonne.

The MOU contemplates the negotiation and conclusion of a Mutual Benefits Agreement between the parties to engage further in terms of employment, training, and provision of services.

Completion of the MOU enables documentation prepared by the Nova Scotia Department of Natural Resources in relation to the planned footprint of the Touquoy Gold Mine to be presented to Cabinet for authorisation.

This development comes on the heels of signing a definitive Merger Implementation Deed with Spur Ventures (TSE:SVU) that will progress development of Atlantic’s Touquoy Gold Project.

Spur, which is focused on potential acquisitions in gold, base metals or other mineral related assets, has Sprott Asset Management as a major shareholder with a 19.4% interest.

Under the Scheme, Atlantic shareholders will receive 0.05564 of a common share in Spur and 0.02782 of a share purchase warrant in Spur for each fully paid Atlantic share held.

Each share purchase warrant will be exercisable for a period of 4 years from the date of closing of the Transaction at an exercise price of C$0.60.

Spur will continue to be listed on the TSX Venture Exchange and will pursue a listing of CDIs on the ASX.

It has also agreed to provide Atlantic with a C$1 million secured loan facility to DDV Gold to repay its existing A$1 million debt.

Touquoy has compelling metrics, including an estimated pre-production capital costs of $142 million, all-in sustaining cash costs of $622 per ounce.

Touquoy has compelling metrics, including an estimated pre-production capital costs of $142 million, all-in sustaining cash costs of $622 per ounce.