Australian-based Manas Resources Ltd has signed a binding agreement to acquire Victoria Gold Project in Tanzania for US$2 million cash and US$2 million in shares.
The project's licenses are strategically located near several established gold mines in the Lake Victoria Gold Field of Tanzania and cover an area of about 350 square kilometres.
To date, the Lake Victoria district accounts for 50 million ounces of gold resource and at least six modern open pit and underground producing gold mines.
Manas’ preliminary studies show potential for shallow gold mineralisation amenable to open pit extraction with good exploration upside.
The deal is conditional that Manas must complete all due diligence to satisfaction prior to mining there.
Manas plans to undertake a two stage capital raising to fund the cash component of the transaction.
Commitments have already been secured for a placement to raise $657,000 after which an entitlement offer will follow.