(Correcting to clarify Managem Group bought into the Senala project in Senegal after acquiring AGEM Senegal Exploration Suarl.)
(Alliance News) - Oriole Resources PLC on Tuesday said that earn-in agreements for two of its Cameroon gold projects will be sealed later this month.
The gold exploration company focused on west Africa said that execution of earn-in agreements for the Bibemi and Mbe gold projects is anticipated this month.
The deal will grant BCM International Ltd, a Ghana-based mining and civil contractor, a 50% interest in both early-stage gold exploration projects. In exchange, BCM will pay the outstanding signature payments of USD450,000 and USD1.0 million for Bibemi and Mbe, respectively.
These signature payments will assist Oriole in fast tracking both projects, the group said. BCM will also provide USD4.0 million in exploration costs at each project, as well as future resource-linked success-based payments.
Oriole said USD72,000 of this funding has already been provided at Bibemi ahead of the application for an exploitation licence this year. The Mbe earn-in is contingent on BCM completing its due-diligence review of the sight, results of which are expected in late January.
Oriole Chief Executive Officer Tim Livesey said: "With our efforts to attract a project-level partner for two of our properties nearing completion, we hope to see rapid and successful progress in 2024, with the expansion and enhancement of the resource at Bibemi, and advancement of the definition of a new gold district within the central licence package, starting with the Mbe project."
In December, a renewal application for the Senala gold project in Senegal was submitted, Oriole noted. Managem Group took control of Senala in April 2023, after it acquired AGEM Senegal Exploration Suarl. AGEM has earned an initial 51% interest in the Senegal exploration licence.
Managem will not be completing any more work at the asset under an existing option agreement which runs to February 17, Oriole added.
"Accordingly, and subject to a final review of the accounts at that time, it is likely that Managem's resultant interest in the project will be approximately 60% (based on expenditure to date) under the option agreement. Managem retains the right to take its interest to the maximum of 70% under the option agreement by making a cash payment to Oriole directly which is equivalent to any shortfall in exploration expenditure (currently estimated to be USD2.3 million). The company is considering its next steps, post completion of the option agreement, which includes, but is not limited to, a joint-venture partnership with Managem or a sale of its interest in Senala," Oriole added.
Oriole is awaiting approval for a two-year licence extension at Wapouze, a gold exploration project in north-eastern Cameroon. In September, the company requested a change of commodity focus from gold to limestone, and will look to secure an industrial mineral partner once the licence renewal is granted.
Livesey said: "We continue to progress the Wapouze licence to a stage of potential farm out as a source of industrial minerals for the cement industry in the region".
Shares in Oriole closed down 3.9% at 0.17 pence each in London on Wednesday.
By Hugh Cameron, Alliance News reporter
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