Giyani Gold (TSX:V.WDG, Stock Forum), an Oakville Ontario-based gold exploration and development firm operating in Canada and South Africa, announced today that the company had entered into exclusive negotiations with a private international energy company (“EnergyCo”) for multiple projects in various jurisdictions including an operating asset located in South Africa.
Company Executive Chairman, Duane Parnham, explained, “The portfolio of assets held by EnergyCo includes cash-flow generating operations, and projects with significant development potential that will be best advanced by combining the management and technical teams of Giyani Gold and EnergyCo.”
According to the news release, the company’s exclusivity periods will extend until the execution of a definitive agreement or July 30, 2014, whichever is earlier.
The company has agreed, as part of the negotiation process, to provide EnergyCo all relevant information regarding Giyani and its Giyani gold project located in South Africa and in return EnergyCo has agreed to provide the company with all information relevant to the energy firm’s projects along with organized site visits.
Although a definitive agreement is being negotiated, there are no assurances that any such agreement will be reached and all terms and conditions of said agreement would still be subject to board, shareholder and regulatory approvals.
The company will maintain silence in regards to this negotiation until it has been terminated or a definitive agreement has been signed.
Mr. Parnham then concluded, “Giyani Gold is focused on acquiring significant assets to strengthen our company and reward our shareholders. We have built a strong relationship with EnergyCo and now that we’re in a period of mutually desired exclusive negotiations, we will move quickly to finalize a binding definitive agreement.”
Giyani was in the news recently when the company announced hiring IR firm Proconsul Capital four days ago.
Shares gained 17.46% on the news to $0.37 per share.
Currently there are 55.0m outstanding shares with a market cap of $20.3 million.