(Alliance News) - Oriole Resources PLC said on Monday an investee in Djibouti is getting USD2.5 million to fund exploration work in the country.
African Minerals Exploration & Development Fund III is investing the cash into Thani Stratex Djibouti Ltd, of which Oriole owns 125, via convertible loan notes. An "ambitious" exploration programme is now underway, Oriole said.
Thani Stratex Djibouti will be testing the Oklila, or Pandora, and Hesdaba epithermal gold projects.
Oriole's Chief Executive Tim Livesey will also be become a director of Thani Stratex Djibouti, Oriole added.
Livesey commented: "We are excited to see the recent progress on the Djibouti targets, under new management. Early indications are that the vein systems at Pandora continues to be intersected along strike and at depth.
"These prospects, originally identified by the company, have the potential to host significant gold mineralisation and we look forward to seeing the drill programmes progress through 2020."
Oriole shares were 14% lower on Monday afternoon in London at 0.27 pence each.
By George Collard; georgecollard@alliancenews.com
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