(Alliance News) - Oriole Resources PLC on Monday announced new heads of terms for earn-in agreements with a "well-respected" Ghanaian contractor to fast-track work on its Mbe and Bibemi projects in Cameroon.
Shares in Oriole were up 84% at 0.19 pence each by around noon in London on Monday.
The London-based, West Africa-focused gold exploration company said it signed the two non-binding heads of terms with mining and civil contractor BCM International Ltd, for earn-ins by the Accra-based firm at Oriole's Mbe and Bibemi gold projects.
Oriole said BCM will earn up to 50% interest in both projects, in return for staged commitments.
The deal on the Mbe licence, located in central Cameroon, will see BCM pay USD1 million cash and commit USD4 million to exploration expenditure in exchange for the earn-in. For the Bibemi project in northern Cameroon, BCM will pay USD500,000 in cash before the end of the year, and again commit to USD4 million in exploration expenditure.
"The structure of the [Bibemi] deal sees a significant inflow of direct investment into resource development which will help fast-track our pathway to development," said Oriole Chief Executive Officer Tim Livesey. "Whilst Oriole will be the operators of the early works, BCM will supply equipment and drilling capacity, with both parties working on an open book system as true partners in the venture."
On the Mbe HoT, Livesey said: "Coming as it does, alongside the Bibemi Heads of Terms agreement, this deal delivers strategic investment into early-stage exploration for Oriole and for Cameroon.
"The 'proof of concept' work carried out in 2021 and 2022 has delivered and the discovery made by the Oriole team in 2022/23 at Mbe has opened the area as a new gold frontier in Africa."
By Emma Curzon, Alliance News reporter
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