Shares of junior-explorer Columbus Gold (TSX-V: CGT) caught fire Wednesday on news gold-producer Nordgold (LSE: NORD) optioned its Paul Isnard gold project in French Guiana. Columbus jumped to a 52-week high in trading, up 33 percent to C$0.40, far off lows it hit in late June just over C$0.15. Columbus and Nordgold outlined a deal heavily weighted toward project expenditures over the next few years that initially sees Nordgold earn 50.01 percent of Paul Isnard, where Columbus counts some 4.2 million ounces gold @ 2.22 g/t, inferred, in the Montagne d'Or deposit. Nordgold said it would pay Columbus $4.2 million by May 21, 2014 and, to earn the 50.01 percent over three years, it would have to spend $30 million. Thereafter Columbus said Nordgold could add to its stake if Columbus decided not to pay its way as part of a joint venture.
AMX Price at posting:
12.5¢ Sentiment: Buy Disclosure: Held
