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PanTerra Gold Advances Novus Gold Corporation Takeover With Approvals Granted

PanTerra Gold (ASX: PGI) is one step closer to acquiring Vancouver-based Novus Gold Corporation (TSX: NOV) with shareholders of the takeover target approving the deal.

The acquisition has also received approval from the Supreme Court of British Columbia.

PanTerra is seeking to acquire 100% of the shares in Novus, offering one PanTerra share for every three Novus shares held.

The company is expected to issue around 18.4 million shares to Novus shareholders later this month.

PanTerra's acquisition of Novus would allow the company to access further projects in the Dominican Republic.

Novus holds two highly prospective concessions close to PanTerra's Las Lagunas project in the Dominican Republic through its subsidiary Invercropolis; the La Yagua Project and the La Paciencia Project.

Preliminary exploration at the 99 square kilometre La Yagua project has identified significant base metal and precious metal mineralisation in five targets.

Grab samples at the project graded up to 18% copper, 13 grams per tonne (g/t) gold and 29g/t silver.

The mineralisation is strata bound Volcanogenic Massive Sulphide type, the same as Perilya's (ASX: PEM) producing Cerro de Maimon copper-gold mine, which is 19 kilometres along strike from La Yagua.

Meanwhile, La Paciencia covers 86 square kilometres, 10 kilometres east of the plus-25 million ounce Pueblo Viejo project owned by Barrick Gold (NYSE: ABX, TSE: ABX) and Goldcorp (NYSE: GG, TSE: G).

La Paciencia has the same underlying geology as Pueblo Viejo, and prospecting has identified elevated gold values along structural lineaments.

Heading for production at Las Lagunas

PanTerra's Las Lagunas project involves the reprocessing of high grade gold and silver refractory tailings from the Pueblo Viejo mine.

These tailings were derived from open pit operations at the mine between 1992 and 1999 and were impounded in a purpose built valley catchment dam.

Las Lagunas is fully financed to the tune of US$83 million, and is in the commissioning stage with production scheduled for April 2012.

The project is expected to produce about 69,000 ounces of gold and 630,000 ounces of silver per annum.

The Pueblo Viejo mine is being redeveloped by Barrick and Goldcorp for more than US$3 billion.