Sylla Gold Enters into Agreement to Acquire District Scale Land Package in Namibian Gold Belt

Rhea-AI Summary

Sylla Gold Corp. (SYGCF) announces the acquisition of four gold prospective properties in Namibia, covering 2,788 square kilometers. The properties are strategically located in the Central Namibian Gold belt, near significant operating gold mines and recent discoveries. The acquisition involves a 95% interest in NMI's Namibian subsidiary, with an issuance of 3,000,000 common shares and a cash payment of $100,000. The agreement is subject to regulatory approvals and TSX Venture Exchange acceptance. The project includes four license areas - Grootfontein, Erongo, Otjiwarongo, and Kaoko, each with unique geological characteristics and mineralization potential. Sylla aims to leverage its expertise to unlock the value in these licenses and tap into the emerging gold district in Namibia.

Bedford, Nova Scotia--(Newsfile Corp. - March 4, 2024) - Sylla Gold Corp. (TSXV: SYG) (OTCQB: SYGCF) ("Sylla" or the "Company") is pleased to announce that it has entered into a share purchase agreement with Namibia Critical Metals Inc. ("NMI") to acquire four gold prospective properties encompassing 2,788 square kilometers, located in Namibia within the Central Namibian Gold belt. Sylla is to acquire a 95% interest in NMI's Namibian subsidiary that own the rights, title and interest to Grootfontein, Erongo, Otjiwarongo, and Kaoko Licences (Figure1).

Regan Isenor, President and CEO of Sylla, commented, "the Company is very pleased to acquire such an extensive land package of prospective ground in a truly emerging gold district. The Central Namibian Gold Belt continues to produce world class gold operations as well as new discoveries and we're looking forward to unlocking the value in these licences by applying some of the knowledge gained from the recent discoveries in the district. The licences Sylla is acquiring were assembled in proximity and on strike of significant operating gold mines and recent discoveries in favorable geology conducive to mineralization."

Figure 1

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The Namibia project consists of 4 licence areas; 

Grootfontein- Comprising of two EPLs covering 1,392 km^2, The Grootfontein licences are located 80 kilometers northeast of B2Gold's Otjikoto Gold Mine and 20 kilometers northeast of Osino Resources' Otjikoto East Project. A structural interpretation of the entire project area provided a detailed analysis of the area delineating the Grootfontein Shear Zone and associated second and third order structures considered favorable for gold mineralization.

Erongo- Covering an area of 263 km² within the Navachab-Ondundu gold trend. There are numerous mineral occurrences within the project area including at least two gold occurrences. The area has been prospected but not systematically explored. Target areas on the properties include arsenic anomalies of 2.5km to 6km in length. The Erongo Project is underlain by the Kuiseb Formation which hosts Orsino Resources Twin Hills project 20km to the south.

Otjiwarongo- Covers 150 square kilometers in the heart of the Central Namibia Gold belt on strike with key structures of B2Gold's Otjikoto Mine.

Kaoko- 983 kilometers squared and covering a portion of the central part of the Kaoko Orogen stretching northward towards Angola. The license is under application. The Kaoko Orogen is remote and largely unexplored.

Terms of the Agreement

As consideration for the acquisition, the Company shall: (i) issue to NMI 3,000,000 common shares at a deemed issuance price of $0.05 per common share; and (ii) make a cash payment to NMI of $100,000.

Closing is subject to the satisfaction (or waiver) of a number of conditions precedent, including, but not limited to receipt of all regulatory approvals and the acceptance of the TSX Venture Exchange. All securities issued pursuant to the acquisition will be subject to a statutory hold period of four months and one day from the issuance thereof, as applicable, in accordance with applicable securities laws.

Qualified Person Statement

All scientific and technical information contained in this news release was prepared and approved by Gregory Isenor, P.Geo., Director of Sylla Gold Corp. who is a Qualified Person as defined in NI 43-101.

For more information, please contact:
Regan Isenor
President and Chief Executive Officer
Tel: (902) 233-4381
Email: risenor@syllagold.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information is characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, and opportunities to differ materially from those expressed or implied by such forward-looking information. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, changes in the state of equity and debt markets, fluctuations in commodity prices, delays in obtaining required regulatory or governmental approvals, and includes those risks set out in the Company's management's discussion and analysis as filed under the Company's profile at www.sedar.com. Forward-looking information in this news release is based on the opinions and assumptions of management considered reasonable as of the date hereof, including that all necessary governmental and regulatory approvals will be received as and when expected. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information. The Company disclaims any intention or obligation to update or revise any forward-looking information, other than as required by applicable securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/200306

FAQ

What properties did Sylla Gold Corp. acquire in Namibia?

Sylla Gold Corp. acquired four gold prospective properties in Namibia: Grootfontein, Erongo, Otjiwarongo, and Kaoko.

What is the size of the properties acquired by Sylla Gold Corp. in Namibia?

The properties acquired by Sylla Gold Corp. in Namibia cover a total area of 2,788 square kilometers.

What is the ownership interest acquired by Sylla Gold Corp. in NMI's Namibian subsidiary?

Sylla Gold Corp. acquired a 95% interest in NMI's Namibian subsidiary.

What are the terms of the acquisition agreement between Sylla Gold Corp. and NMI?

As per the acquisition agreement, Sylla Gold Corp. issued 3,000,000 common shares at a price of $0.05 per share and made a cash payment of $100,000 to NMI.

What are the conditions for closing the acquisition deal?

Closing the acquisition deal is subject to various conditions precedent, including regulatory approvals and TSX Venture Exchange acceptance.