Columbus Gold on the rise after Nordgold deal

摘要

It can be tough for junior companies to get market traction these days, but one angle that can still make shares pop is the age-old option agreement with a large-cap producer. And that's the story for Columbus Gold (TSXV: CGT; US-OTC: CBGDF) at its multi-million ounce Paul Isnard gold project in northwest French Guiana, 180 km west of Cayenne. On Sept. 18 Columbus announced an option agreement with Moscow-based producer Nordgold (LSE: NORD) that could see the larger company earn a 50.01% interest in certain licences at Paul Isnard. With the deal Nordgold would pay Columbus $4.2 million in cash by May 2014, and earn its controlling interest by taking the project through to the feasibility stage and investing no less than US$30 million in staged work expenditures at the site over the next three years.