African Gold enters earn-in agreement with Resolute Mining

Resolute can earn up to an 80% interest in the project by the completion of an agreed minimum exploration program in two years and the subsequent completion of a feasibility study over an eight year period. Resolute own and operate the neighbouring Syama Gold Mine.

African Gold Managing Director, Mr Phillip Gallagher, said:

“African Gold is pleased to enter into this agreement with Resolute Mining as they are the natural partners for our Syama Shear Zone Gold project. Resolute’s Syama Gold Mine is a very large, operating gold mine that is contiguous to African Gold’s Syama Shear Zone project.

“The agreement allows African Gold to maintain a meaningful interest in the Syama project with the option to participate in the future development of the project, if it chooses to do so. In the short term, African Gold will focus its efforts on its flagship Didievi Gold project in Cote d’Ivoire and its Senegal-Mali Shear Zone projects in Northern Mali.”

Key Terms of the Agreement

Resolute can earn up to 80% of the Syama Project by:

• Spending US$500 000 on an agreed exploration program in 24 months following the execution of the agreement.
• Commencing a feasibility study within five years and completing the study within eight years of the execution of the agreement.
• During the earn-in period, maintaining the permit in good standing.

Resolute are transferred the 80% ownership of the Syama Project following a positive decision to mine, which must be made within 90 days following the completion of the feasibility study. Following a positive decision to mine from Resolute, African Gold can elect to contribute to the project development to maintain its equity or dilute to a 1.5% net smelter royalty.

Read the article online at: https://www.globalminingreview.com/mining/12102022/african-gold-enters-earn-in-agreement-with-resolute-mining/