LONDON (Alliance News) - Orogen Gold PLC on Monday said it has executed its option to acquire an initial 51% stake in the Silverton gold property in the US from fellow London-listed Galileo Resources PLC by spending USD400,000 on exploration over the next 18 months.
Orogen then has the choice to earn another 24% stake, pushing the total stake up to 75%, by spending an additional USD1.5 million on the property within the next 30 months, it said.
But Galileo will have the right to participate on a pro-rata basis after Orogen has acquired the initial 51% stake, meaning Galileo would retain its 49% stake if it exercises that option.
Galileo, in its own statement, said Orogen had started to conduct a re-mapping and sampling programme to confirm sites for an initial diamond drilling programme.
Galileo shares were down 2.4% to 1.0 pence per share on Monday, whilst Orogen shares were down 0.5% to 0.0184 pence.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Galileo Resourc (GLR)