…says ‘Guyana is one of the most compelling mining jurisdiction’
By Renay Sambach
(Kaieteur News) – “Guyana is one of the most compelling mining jurisdictions in the hemisphere, and Marudi is a standout asset within it.” Those are the words of Gregory R. Walsh, the Co-Founder and General Partner of Walsh Karra Holdings, a United States investment firm moving to take control of Canadian-listed Golden Shield Resources Inc. through a transaction dependent on, among other conditions, the renewal and issuance of the company’s prospecting licence for its Marudi Mountain gold project in Guyana.
Golden Shield Resources holds a 100% interest in the Marudi project through its wholly-owned Guyanese subsidiary, Aurous Guyana Inc., under Prospecting Licence PL 1/2021.
The project covers a contiguous land package of 54.57 square kilometre (km²) or 13, 484 acres, and is located in the Rupununi District of southwestern Guyana, some 60 kilometres from the Brazilian border.
The targets drilled at the Marudi Mountain Gold Project
Binding Letter of Intent
According to Golden Shield, it signed a binding letter agreement with Walsh Karra Holdings, acting through its wholly owned subsidiary, Aurevo Resources Inc., for a C$5 million investment. It was also disclosed that existing shareholders and management will also be allowed to invest up to an additional C$1 million on the same terms. The entire transaction is valued at approximately US$4.2 million.
The proceeds will be held in escrow until specified conditions are met, including the renewal and issuance of the Marudi Mountain project Prospecting Licence PL 1/2021, shareholder approval, acceptance by the Canadian Securities Exchange (CSE) and confirmation of the legal status and practical development position of related permits and rights.
If the aforementioned conditions are not satisfied by January 6, 2027, the escrowed funds and accrued interest will be returned to subscribers.
Mining at Mazoa Hill
Commenting on the transaction, Gregory Walsh underscored that Guyana is one of the most compelling mining jurisdictions in the hemisphere, adding that the Marudi asset standout. “We are investing behind a team that has done the hard work to advance the project, and we intend to match that with capital, technology and governance that benefit shareholders, local communities, and the country. The combination of Marudi’s geology and Aurevo’s mineral passport traceability platform is a chance to show what a modern, accountable gold business looks like,” he added.
Meanwhile, Chairman and CEO of Golden Shield, Leo Hathaway said, “We are delighted to welcome Walsh Karra Holdings, Greg Walsh and Phani Karra as strategic partners in Golden Shield. The depth of expertise, significant injection of capital and the unique, applicable technology that they bring to the company, and its Marudi asset, is transformational.”
Hathaway added that the company is excited to advance the project in a meaningful partnership with local communities, the Guyanese government and the people of Guyana.
Upon completion, Walsh Karra Holdings and its controlled affiliates will hold approximately 51 per cent of Golden Shield’s shares on a fully diluted basis, resulting in a change of control of the company. Meanwhile, in exchange, the company for 13 million common shares, Golden Shield is set to acquire certain strategic technology licence and related commercial rights, including a permanent, worldwide licence to use, deploy, commercialize, sublicense and embed the SimplyFI AI, traceable minerals and blockchain technology stack. The technology is intended to support the Marudi project and its broader Guyana operations.
Moreover, as part of the transaction, Golden Shield expects to appoint a new chief executive officer and reconstitute its board of directors. The proposed board will comprise two nominees of Walsh Karra Holdings, two nominees of Golden Shield and an independent director to be jointly agreed upon.
Marudi Mountain project
Golden Shield commenced exploration on the Marudi Mountain Property in late 2021. Since acquiring the project, Golden Shield said it completed four diamond drilling campaigns. The company says the project contains an extensive mineralised gold system centred on the Mazoa Hill Deposit, with a historical resource of 345,000 ounces of gold – 259,100 ounces indicated and 86,200 ounces inferred, which does not reflect current resources or reserves.
A total of approximately 50,350 metres of diamond drilling has been carried out at the gold project, with Mazoa Hill representing the principal deposit where most of the drilling has occurred.
Notably, a discrete area of approximately 1,012 acres over the surface expression of the Mazoa Hill deposit is subject to a five-year Special Mining Permit granted to the Rupununi Miners Association in an agreement dated November 17, 2021, with the Golden Shield’s rights below an average depth of 48 metres and beyond that area preserved.
There are also other major prospects that were already identified by current and previous operators, as well as new targets. Beyond Mazoa Hill, the property hosts a series of additional prospects along an under-explored mineralized corridor, including Marudi North, Pancake Creek, Toucan Creek, Throne, July, Peace Creek, Kimberley and Success Creek.
According to Golden Shield, gold has been known at Marudi Mountain since the early twentieth century, and the property has been the subject of modern exploration by a succession of operators since the 1940s, including Noranda Inc., Romanex/Sutton Resources, Vannessa Ventures, Shoreham Resources/Guyana Frontier Mining and Guyana Goldstrike Inc.
Source: Kaieteur News
