Asara Resources (ASX:AS1) has announced it will expand its landholding around the Kada Gold Project in Guinea to about 301km² through the acquisition of two exploration permits in the Siguiri Basin.
The company has completed due diligence and agreed to acquire all issued capital in Arafura Ouest, which holds the Damissa Koura and Kankan West permits through its Guinean subsidiary, Ara Exploration.
Settlement is expected on or around 7 September 2026.
Asara will pay the vendors SGD100 ($109.61) at settlement. It will also issue five million fully paid ordinary shares as a consulting fee for three months of assistance with Arafura and its subsidiary. The shares will be subject to 12 months of escrow.
CEO Matthew Sharples says the permits complement Asara’s existing ground and provide further exploration opportunities.
“The new permits are a natural complement to our existing portfolio, expanding our landholding across a highly prospective area and providing additional opportunities for exploration and future growth,” Sharples says.
Asara says work across the new permits will form part of the company’s wider exploration strategy to grow Kada’s mineral resource and support a Definitive Feasibility Study.
The company holds a 75% interest in the project after exercising its right to earn an additional 24% in 2022. Securing that increased interest requires the company to fund preparation of the study.
Kada hosts an indicated and inferred mineral resource estimate of 30.3 million tonnes (Mt) @ 0.95 grams per tonne gold (Au) for 923,000 ounces. The estimate is reported on a 100% project basis and is not adjusted for Asara’s ownership.
This includes 12.37Mt of oxide material @ 0.98g/t Au for 391,000 ounces. Asara says most of Kada’s existing 150km² area remains underexplored, with further oxide gold mineralisation among its exploration targets.
Asara is an exploration company advancing gold assets in Guinea and the Loreto Copper Project in Chile.
Write to France Pinzon at Mining.com.au
Images: Asara Resources
