African Gold Limited (ASX: A1G) announced that it has entered into a conditional share purchase agreement to acquire 100% of Abra Resources Pty Ltd.
With the acquisition, A1G has made a significant increase in landholding to 436 km2 on the prolific SMSZ, as Abra owns the Samanafoulou, Sitikili, Yatia, Golokasso gold projects, and the option to purchase a 95% interest in the Walia gold project in Mali.
The company said that the Permits contain major geological & geochemical targets including multiple prospective flexures on or adjacent the SMSZ that have yet to be drill tested.
This Acquisition adds to A1G’s recently secured Falémé Gold Project in Western Mali and the currently held Agboville Gold Project in Cote d’Ivoire.
The company reported that it has a strong cash balance of A$3.4 million and is currently undertaking onsite surveys ready for its maiden exploration programme including drilling in Quarters 3 & 4 2019.
Acquisition of Abra
The company reported that it has entered into a conditional share purchase agreement to acquire 100% of Abra Resources Pty Ltd.
This Acquisition adds to the recently secured Falémé Gold Project and grows the Company’s presence to 436km2 in the highly prospective and prolific world class gold producing Kenieba Inlier in Western Mali in addition to the currently held 1,400km2 Agboville Gold Project in Cote d’Ivoire.
Holdings of Abra Resources
Abra Resources Pty Ltd, through its wholly owned Malian subsidiary, owns the Samanafoulou, Sitikili, Yatia, Golokasso gold projects, and the option to purchase a 95% interest in the Walia gold project in Mali.
Four of the five permits are located in the highly prospective and prolific gold producing Kenieba Inlier in western Mali and the remaining permit is located along strike from the Syama Gold Mine in southern Mali. The west Mali permits are located within the prolific gold producing Kedougou-Kenieba.
The Sitikili permit (45km2) is located in Kedougou-Keneiba (K-K) Inlier, western Mali. It has multiple high priority walk up drill targets.
The Sitikali permit contains a number of large scale and recent artisanal workings with only limited piecemeal historical shallow drilling undertaken over a small portion of the permit.
Significant historical drill results include 4 m @ 28.9 g/t gold from 129.0 metres (Grand Filon); 9 m @ 5.67 g/t gold from 95.0 metres (Grand Filon); and 6.6 m @ 115.5 g/t gold (Kirchon Trend).
Yatia gold project
The Yatia Gold Project (47km2) is located in the Kenieba region of west Mali. Artisanal gold mining occurs at two localities on the Yatia permit; Segala Ouest and Baroye.
Significant gold mineralisation has been intersected in drilling and trenching at a number of locations on the Yatia permit. Historical drill results include 10 m @ 2.87g/t gold (trench); 2 m @ 7.40 g/t gold from 79.0 metres; 7 m @ 1.95 g/t gold from 28.0 metres; 1 m @ 21.80 g/t gold from 17.0 metres; and 13 m @ 1.17g/t gold from 39.0 metres.
Walia gold project
The Walia Gold Project (80km2) is located in the Kenieba region of west Mali. The Walia permit abuts Barrick Gold’s Loulo mine (14 Moz) and straddles the Senegal Mali Shear Zone (SMSZ).
It contains a number of high priority untested walk up drill targets immediately along strike of Barrick’s mine.
Samanafoulou gold project
The Samanafoulou Gold Project is located in the Kayes region of west Mali. The Samanafouolou permit is at an early stage of evaluation and very limited exploration work has been undertaken
Golokasso gold project
The Golokasso gold project (90km2) is located in the Sikasso region of south Mali, approximately 400 km by road from Bamako.
Golokasso is broadly situated on the northern extension of the Syama Gold Belt where multiple gold deposits and gold prospects occur, including the world class Syama Mine (+8 Moz), A21 deposits (+1 Moz) and Tabakoroni (1 Moz).
A1G’s Other West Mali Permits
The Company reported that its other West Mali Permits contain only a handful of shallow reconnaissance holes requiring follow up testing. Shallow results include 7 m @ 4.2 g/t gold (from 62.8 metres); 5 m @ 8.6 g/t gold (from 93.8 metres); and 24 m @ 2.01 g/t gold (from 59.8 metres).
Terms of the Agreement
A1G reported that according to the terms of the share purchase agreement (SPA); a payment of A$45,000 has been made to Abra to secure a 45 day exclusivity right to complete legal, financial and technical due diligence.
Subject to satisfaction of due diligence, A1G will make $125,000 cash payment to Abra shareholders; issue three million (3,000,000) African Gold shares at a deemed issue price of AUD16.5 cents per share to shareholders of Abra; and issue of twelve and a half million (12,500,000) African Gold shares (Deferred Consideration Shares) to shareholders of Abra.
The company said that the Deferred Consideration shares will be issued upon the completion of the applicable milestone for each of the three planned tranche.
The Company said that it anticipates lodging a notice of meeting shortly in respect of the Acquisition.
The company said that it is planning further collection, collation and interpretation of historical data. This would then be followed by mapping, soil and rock chip sampling, pitting, trenching, auger, geophysics, RAB/AC, RC and diamond drilling.
African Gold Executive Director Steve Parsons said: “I’m very excited that we have managed to grow such a significant land package in what is one of the premier gold mining districts globally. It is incredible that such limited historic work has been undertaken in such a prolific gold producing region.
We intend to commence work immediately by undertaking the first systematic exploration and testing of a number of high priority drill targets on our exciting new west Mali Permits”
He also said: “We are building a significant land position in the highly prospective Kedeougou-Kenieba Inlier of Western Mali. Not just acreage but highly prospective permits in an excellent geological address, on which mostly “piecemeal” historical work has already defined multiple targets, many of which have only partially been assessed or not tested at all. In all cases huge potential remains to define additional high-quality walk up gold targets.
The K-K inlier has long been known as a world class gold producing district hosting major mines such as Sadiola, Yatela, Loulo, Gounkoto and Tabokoto. In more recent year’s exploration continues to deliver success in this region through discoveries of Fekola, Sabodala, Boto, Kofi, Mako and many others.”