Alecto Minerals plc is an African focussed, gold and base metal exploration and development company quoted on AIM with exploration projects in Mali, Ethiopia, Mauritania and, following completion of the abovementioned acquisition, Burkina Faso.
In Mali, the Kossanto Project has a current independent inferred JORC Code compliant resource estimate of 6.72Mt grading at 1.14g/t Au for an aggregate of 247,000 oz Au with a cut-off grade of 0.5g/t Au at Kossanto East. The Kossanto Project is located in the centre of the Kenieba inlier in western Mali. The Kenieba inlier is a block of ancient greenstones and granites hosting many significant gold deposits in Senegal and Mali, making it one of the most important gold regions in Africa.
The Kerboulé Project, located in the highly prospective Birrimian-age Djibo gold belt in northern Burkina Faso, is ideally positioned for the definition of a preliminary JORC resource estimate, as well as on-going resource expansion, and accordingly will be the near term focus of the Company to provide the basis for commencing a preliminary economic assessment.
Alecto also has a joint venture with Centamin plc over two prospective gold exploration licences in Ethiopia which sees Alecto retain exposure to these assets with no capital expenditure obligations, as well as the wholly owned Wad Amour IOCG Project in Mauritania which is at an exploration stage.
Combined, these projects provide the Company with a strong, diversified portfolio with exciting exploration upside potential.
Alecto Minerals plc / EPIC: ALO / Market: AIM / Sector: Exploration & Development 24 November 2014 Alecto Minerals plc ('Alecto' or the 'Company') Completion of the Acquisition of the Kerboulé Gold Project in Burkina Faso and issue of equity
Alecto Minerals plc (AIM: ALO), the AIM quoted mineral exploration company focussed on West and East Africa, announces the completion of the acquisition of 100% of Gazelle Resources Incorporated ('Gazelle'), which wholly owns the 399.5 sq. km. Kerboulé Gold Project ('Kerboulé' or 'the Project') located in the highly prospective Birrimian-age Djibo gold belt in northern Burkina Faso ('the Acquisition').
The initial consideration for the Acquisition of £350,000, has been settled through the issue of 54,996,857 new ordinary shares of 0.01 pence each in the capital of Alecto ('Ordinary Shares') at a price of 0.6364 pence per Ordinary Share.
Further issue of Ordinary Shares
Additionally, the Company has agreed to issue 4,714,016 new Ordinary Shares ('Fee Shares') to a consultant to the Company, in lieu of fees in respect of the Acquisition. The Fee Shares will rank pari passu in all respects with the existing Ordinary Shares of the Company.
Application for trading on AIM and Total Voting Rights
Application has been made for the Fee Shares to be admitted to trading on AIM and admission is expected to become effective and dealings commence at 8.00 a.m. on 27 November 2014 ('Admission'). On Admission, the Company will have in issue 884,789,314 Ordinary Shares.
The Company has no Ordinary Shares held in Treasury. The above figure may therefore be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.
Africa-focused explorer Alecto Minerals (ALO) has bought another gold project in Burkina Faso, to add to its interests in Mali, Mauritania and Ethiopia. The London-based company, which recently appointed as chairman City veteran Mark Wellesley-Wood, who once sought to revive Cornish tin mining, is acquiring the Kerboule gold project in the West African country’s Djibo gold belt, near fellow AIM counter Avocet Mining’s Inata gold mine, in a deal which chief executive officer Mark Jones suggests ‘is capable of delivering significant returns.’
Alecto, which lost £1.2 million in 2013 and another 622,253 in the six months to June but ended the half year with £712,553 cash, is paying Canadian exploration outfit Kaizen an initial £350,000 in shares at 0.63p for Kerboule-- against a depressed current share price of 0.65p. Subsequently, Alecto will pay Kaisen $1.5 million (£950,000) in shares or cash, at it chooses, if it can establish a formal inferred gold resource for Kerboule of at least one million oz. or a formal proven reserve of 500,000 oz. or produce the project’s first 75,000 oz.
The company notes artisanal miners at Kerboule have struck intercepts including 20 metres with 2.39 grammes of gold per tonne of ore and 40 metres with 1.9 grammes a tonne in the south of Kerboule and 38 metres with3.95 grammes a tonne and five metres with 3.74 grammes a tonne in the north. Jones, a mining engineer and ex-boss of African Mining and Exploration, argues the acquisition is ‘in line with our strategy of rapidly seeking to unlock value at low cost’.
Jones concedes Burkina Faso’s former president Blaise Compaore was recently ousted in a ‘popular uprising’. However, he insists the country ‘remains open for business’ and cites ‘our first-class contacts and network in the country.’
Elsewhere, Alecto recently announced a 131% increase in its formal resource estimate to 247,000 oz. of gold at Gourbassi in its Kossanto project in Mali and a new area of mineralisation there and is awaiting drilling results from Wayu Boda in Ethiopia. This is part of a joint venture with the operator, fully-listed Centamin, which has the option to earn 70% of Wayu Boda by spending $6 million and can earn the same share in another prospect there, Aysid-Metekjel, by spending $5 million.
Alecto’s other interests include the 1,369 sq. km. Wad Amour iron oxide gold and copper deposit in Mauritania, where one zone has shown copper at surface at a decidedly encouraging 5.79% though the start of drilling has been delayed, and the 250 sq. km. Karan gold prospect in western Mali. The company bought Karan for £250,000 in shares at 1.25p from yet another AIM player, Savannah Resources.
Savannah now has 21% of Alecto, followed by Saudi tycoon Fahad Al-Tamimi with 13.2%. At 0.65p, 67% below their 2006 float price, the shares value Alecto at £65.4 million and cou
Thanks Jimbo but I don't want to put my personal email out there and I can't afford to upgrade on here so that I can send personal messages as I keep loosing all my money on the AIM! Hopefully the day will come when I can find a FITBUG. Let's hope we have a strong finish to the year now that we have 2 potential JV's one with the new acquisition and the cooper mineral site. I think CEY want to put want to drag out their JV as they know Alecto isn't cash rich and may pick a bargain by delaying results and putting them under financial pressure. Good Luck.
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