A United States investment firm is seeking to take control of Canadian-listed Golden Shield Resources through a transaction tied to the Marudi Mountain gold project in southwestern Guyana.
Golden Shield announced on October 13 that it had entered into a binding letter agreement with Walsh Karra Holdings, acting through its wholly owned subsidiary, Aurevo Resources Inc. The transaction is valued at C$6 million, or approximately US$4.2 million.
The proposed arrangement could give Walsh Karra Holdings and its controlled affiliates approximately 51% of Golden Shield’s shares on a fully diluted basis, resulting in a change of control of the company.
However, the transaction remains conditional. Among the requirements are the renewal and issuance of the prospecting licence for Marudi Mountain, shareholder approval, acceptance by the Canadian Securities Exchange and confirmation of the legal status and practical development position of relevant permits and rights.
The proceeds are to be held in escrow until specified conditions are met. If those conditions are not satisfied by January 6, 2027, the escrowed funds and accrued interest are to be returned to subscribers.
Golden Shield holds its interest in Marudi through its Guyanese subsidiary, Aurous Guyana Inc., under Prospecting Licence PL 1/2021. The project covers approximately 54.57 square kilometres, or 13,484 acres, in the Rupununi, about 60 kilometres from the Brazilian border.
The company has said it conducted four diamond-drilling campaigns after beginning exploration in late 2021. It has also cited a historical resource estimate of 345,000 ounces of gold at the Mazoa Hill deposit, comprising 259,100 indicated ounces and 86,200 inferred ounces.
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