Mahdia Gold this week announced that the company has completed its first phase of the expansion of its land holdings in the Omai/Essequibo River area with the execution of an option to acquire 100% of the mineral rights represented by eighteen Prospecting Permits Mediums Scale with a total aggregate surface area of 21,406 acres.
The agreement, negotiated with South American Mining, a private Guyana Company grants, through powers of attorney pursuant to Guyana law, the right to explore and, as warranted convert the rights to Mining Permits or Mining Licenses and thereafter acquire the entire land holding.
The transaction represents a significant expansion of the boundaries of the Company's current assets in the Omai District and the corresponding exploration and development opportunity thereupon.
The Omai expansion is located in a well known gold bearing region and will be evaluated as part of the Company's ongoing redevelopment of the Omai Prospecting License.
This expands the Company's land for exploration and mining purposes, by a multiple of almost 4 times to 28,646 acres in the same area.
The additional exploration opportunity covers regional geological contacts and gold target in bedrock, oxide/ saprolite and alluvial / colluvial environments which the Company's technical team has selected as high priority.
Management of the Company expects this expansion of opportunity to provide significant enhancement in shareholder value during the medium and long term development of the district. Omahi Expansion was closed to modern exploration throughout the previous life cycle of the Omai and exploration work will be coordinated with optimization of the Company's main holdings without the obligation of minimum exploration expenditures associated with Prospecting Licences.
Including an initial payment of Fifty Thousand United States Dollars ($50,000.00) the total consideration for the post option acquisition of 100% of OMAI EXPANSION, will be One Million United States Dollars ($1,000,000.00) and Two Million (2,000,000) Shares of Mahdia Gold Corp.