TSXV-listed Algold Resources has entered into a non-binding agreement with Osisko Gold Royalties to complete a CDN$2 million private placement.

In addition Algold Resources will grant a 1.5% NSR royalty on the Tijirit gold project for a consideration of CDN$2.8 million, for total gross proceeds of CDN$4.8 million.

The Tijirit gold project is comprised of the Tijirit mining license 2480C2, covering 306 km2, and of the adjacent Exploration License 1117B2, covering 460 km2.

[quote]The Tijirit gold project is the host of three adjacent deposits: Sophie, Lily and Eleonore, with an inferred resources of 602 000 oz Au at a grade of 2.29 g/t Au, including the high grade Eleonore deposit which hosts 357 920 ounces at a grade of 4.18 g/t Au.

Tijirit is situated approximately 30 km southeast from the Tasiast deposit.

“Osisko provides Algold with a break-through investment for the development of Algold’s Mauritanian Tijirit gold project. We are privileged to have Osisko as a strategic partner,” says Algold chairman Benoit La Salle.

“We are extremely pleased to receive financing and endorsement from a world leading precious metals royalty company,” says president and CEO, François Auclair.

“Osisko is a much-valued strategic shareholder that validates the potential of our flagship Tijirit gold project and ensures that Algold takes advantage of current and future opportunities to create shareholder value in Africa,” concludes Auclair.

“We are delighted to participate in the advancement of the Tijirit gold project, located in a top emerging gold camp,” states Osisko chairman and CEO, Sean Roosen.

“Upon closing of the offering, Osisko will own approximately 12.6% of Algold’s outstanding common shares on a partially-diluted basis.

Under the Offering, Osisko will subscribe for 14 285 714 units, each at a price of $0.14 and consisting of one common share and one common share purchase warrant entitling the holder to acquire one common share at a price of $0.20 for a period of 36 months.

Feature image credit: Wikimedia