Panthera Resources PLC - West Africa and India-focused gold miner - Unveils USD18 million farm-out agreement on Labola Project in Burkina Faso, West Africa, with Diamond Fields Resources Inc. Labola reverse circulation drilling, by Panthera associate company Moydow Holdings Ltd, completed in mid-August. Full assay results are anticipated at the end of third quarter.
Plans to restructure ownership interests in Moydow and underlying assets. Spins-out of Kalaka and Nigeria projects from Moydow into new entity Maniger, interest split 50-50 between Panthera and Diamond Fields. Diamond Fields will own 80% of Moydow on the conditional of spending USD18 million on Labola, Panthera holds other 20%. Panthera holds 10% back-in right of USD7.2 million for five years or earlier than Diamond Fields's spend.
"The Diamond Fields resources transaction secures significant multi-year financing for Labola, ameliorates potential concentration of risk and maximises shareholder exposure to the growth opportunity from our wider asset portfolio," says Managing Director Mark Bolton.
Current stock price: 13.90 pence, up 4.9% today
Year-to-date change: down 58%
By Josie O'Brien; josieobrien@alliancenews.com
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