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Giyani Gold jumps on exclusive talks with private energy company

Published: 15:42 16 Jun 2014 EDT

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Giyani Gold Corp. (CVE:WDG) shares jumped Monday after the company announced it is in exclusive negotiations with a private international energy company (EnergyCo), which has "multiple projects in attractive jurisdictions", including an operating asset in South Africa.

The junior gold explorer, with properties in South Africa and Canada, told investors that the period of exclusivity will last until the earlier of a signed definitive agreement or July 30. 

"Giyani Gold is focused on acquiring significant assets to strengthen our company and reward our shareholders," said executive chairman Duane Parnham.

"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."

The chairman also said the portfolio of assets held by the energy company includes cash-flow generating operations, and projects with "significant development potential".

Giyani has hired energy sector professional Bertan Atalay, who has more than 25 years of experience in the midstream oil and gas financing industry, as a consultant to help with the proposed transaction.

The terms of a definitive deal are still being negotiated, the companies said, and are subject to approval by both boards. 

Giyani's main focus is the development of the Rock Island gold project and ongoing exploration for gold at its Northern Ontario project. The Rock Island asset consists of two prospecting rights across four properties, which contain six previously producing gold mines.

Shares of Giyani soared over 17% to 37 Canadian cents on Monday, rising to as high as 38 cents during the session.

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