08:09 AM EDT, 09/10/2024 (MT Newswires) -- G2 Goldfields ( GUYGF ) said Tuesday that it agreed to acquire exploration rights to a 30,000-acre package of "highly prospective exploration properties" in Guyana's Aremu-Oko district. According to a statement, the Oko gold district has emerged as one of the most significant in Guyana and currently hosts combined resources of 7.8 million ounces of gold.

Tuesday's statement noted the current estimated gold resource for G2's OKO-AREMU project is 922,000 ounces of gold (indicated) and 1,099,000 ounces of gold (inferred). G2 said it currently has five drills operating within the district. It added this alliance further consolidates the company's dominant land position, with G2 holding exploration rights to an area totalling 60,000 acres in this district. G2 intends to file an updated Mineral Resource Estimate (MRE) for OKO-AREMU deposits in Q1 2025.

The company said the new properties comprise three sets of contiguous permits which host multiple historical gold occurrences along a 34-kilometer long mineralized contact. It added the acquisition is part of an exploration alliance with a prominent Guyanese mining family.

"This most recent alliance further consolidates G2 as the major player in the district," said Patrick Sheridan, G2's executive chairman. "The company is currently mobilizing significant resources to the areas and will be executing a full sequence exploration program building upon prior exploration success in the district."

Meanwhile, on corporate reorganization, G2 intends to distribute its 'non-core' assets to shareholders, by way of a plan of arrangement, in late 2024. The new company, 'G3', will own assets in both the Puruni and OKO-AREMU districts including three historical past producers and exploration rights to an area extending over 60,000 acres. G2 intends to add additional assets to the G3 portfolio and, subject to shareholder and regulatory approval, distribute the G3 shares to G2 shareholders on a ratio of one share of G3 for each two shares of G2 held. Further details of the transaction will be provided in the coming weeks.

G2's share price fell 3.2% yesterday to $1.50 on the TSX.