Under the agreement, Aurum will pay FCFA7 million (A$19,000) for a 35 per cent share in MSP and contribute FCFA23 million (A$63,000) for MSP’s operations before receiving the first exploration permit.
The earn-in structure allows Aurum to increase its interest through three phased exploration milestones.
The stages include spending US$1.5 million (A$2.29 million) or drilling 7000 metres within two years to reach a 51 per cent interest; then spending US$3 million (A$4.58 million) or drilling 15,000m within four years to reach 80 per cent; followed by the completion of a pre-feasibility study to secure 95 per cent.
Milestone payments to MSP include US$250,000 for the equivalent of 250,000 ounces of JORC-indicated resources in phase 1 and $1 per ounce in phases two and three, payable in cash or Aurum shares.
In the mining phase, MSP can retain a 4.5 per cent stake by contributing 5 per cent of construction costs or earn a 3 per cent free carry if it does not. The Côte d’Ivoire government will hold a 10 per cent stake.
Aurum’s Boundiali project currently contains a JORC resource of 2.41 million ounces of gold across six deposits. The company has a further 0.87 million ounces at its Napié gold project, about 80km southeast of Boundiali.
Boundiali and its satellite prospects and deposits are well-situated within the highly prospective Birimian greenstone belt, which is home to major operations including Resolute Mining’s 11.5-million-ounce Syama gold project and Barrick Mining’s 5-million-ounce Tongon gold operation and others.
With its remarkable complement of 10 operating diamond drill rigs, Aurum is capable of highly mobile, selective and cost-effective exploration. It plans to complete 100,000m of drilling by the end of the year and to deliver two resource updates and a pre-feasibility study for the Boundiali project by year’s end.
The company’s recent $35.6 million placement ensures solid funding for its various planned stages of exploration and development, with Aurum’s next steps, through its subsidiaries Plusor Global and Mako Gold, including collaboration with MSP to secure exploration licences for the three permits.
Once granted, Aurum plans to launch initial drilling programs on the new tenement areas that will include diamond drilling to explore their gold potential.
Aurum’s latest addition of almost 500 square kilometres to its already prospective portfolio represents a significant extension of the company’s portfolio in already identified target areas.
The new acquisitions strengthen Aurum’s already solid position in Côte d’Ivoire’s rapidly growing gold sector and enhances the company’s prospects of extending its rapidly growing gold inventory.
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