PanTerra Gold moves closer to acquiring Novus Gold Corp of Canada

PanTerra Gold (ASX: PGI) has finalised an agreement to acquire Vancouver based Novus Gold Corporation (TSX-V: NOV).

PanTerra will issue one PGI share for three NOV shares by way of a plan of arrangement under the laws of British Columbia, Canada. 

The company expects to issue approximately 18,412,645 PGI shares pursuant to this transaction.

The agreement terms included the continued suspension of the company’s existing farm-in agreement on NOV’s two concessions in the Dominican Republic (La Yagua copper prospect of 9900ha, and La Paciencia gold prospect of 8600ha).

The transaction is expected to complete in early March 2012.

Novus Gold's subsidiary Invercropolis holds two prospective and well-located concessions for copper/gold.

The first at La Yagua (9,900 hectares) which is located 19 km along strike from Perilya Limited's (ASX: PEM) producing Cerro de Maimón mine (6 Mt of 2.5% copper, 1.2 g/t gold and 38 g/t silver).

The second at La Paciencia (8,600 ha) which is located 10 km to the west and underlain by similar geology to the Pueblo Viejo gold deposit (23 million oz plus gold) being developed by Barrick-Gold Corp.

However, the US$60 million Albion process plant currently being constructed by EnviroGold to recover gold and silver from the refractory tailings, could ultimately be made available to Invercropolis to process any refractory ore mined by the EnviroGold-Novus joint venture.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/24451/panterra-gold-moves-closer-to-acquiring-novus-gold-corp-of-canada-24451.html