Aurum Resources (ASX:AUE) has signed an agreement to acquire an 87% interest in its three permit applications in Côte d’Ivoire, expanding its Boundiali and Napié gold projects.
Through the group’s subsidiary, Aurum will take a 35% stake in local partner, Major Star Plus Sarl.
The three licence applications expands Aurum’s landholding at both the Boundiali and Napié gold projects in Côte d’Ivoire, with application No. 0791 spanning 114.53km2 to the west and south of Boundiali, application No. 0793 covering 99.12km2 to the west of Napié, and application No. 0804 holding 254.97km2 in central Côte d’Ivoire.
Under the agreement Aurum will pay $19,000 for its capital share, as well as another $63,000 to cover administration and operation costs for Major Star after the return of its first exploration permit.
The company will be able to earn up to 95% interest from the exploration phases upon completion of a Prefeasibility Study, as well as up to 87% in the mining exploitation phase.
Aurum will be required to spend the FCFA equivalent of US$1.5 million on exploration work in the first two years after the granting or conduct 7,000m of diamond drilling, also issuing the equivalent of US$250,000 of JORC-compliant resources at 250,000 ounces defined with a cut-off of 0.5 grams per tonne.
Following the completion of phase one activities, Aurum will have a 51% stake in the exploration permit, before attaining 80% in phase two from the same terms accelerated.
The mining exploitation phase offers Major Star up to 4.5% for its contribution of 5% of construction costs for a future mine, otherwise retaining its 3% free carry in the capital, leaving Aurum with 85.5% or 87% respectively.
The state will continue to hold 10% interest in the assets.
Managing Director Caigen Wang says the collaboration between the two companies is in regard to Aurum’s “unique exploration and discovery capacity”.
“It is really a rare opportunity to have one partnership that can benefit both our Boundiali and Napié gold projects, but also provide an additional gold exploration project in central Côte d’Ivoire,” Wang says.
“The advanced application No. 0791 is an opportunity to further enhance the upside of Boundiali Project’s gold resources, providing an opportunity for Aurum to explore the mineralisation extension from Boundiali South tenement.
“The joint work on No. 0793 is the commencement of our effort and belief in consolidating the Napié Gold Project’s neighbouring projects to bring it to a similar status of Boundiali Gold Project becoming a major regional gold project in Côte d’Ivoire.”
Aurum Resources is focused on discovering and developing gold projects across Côte d’Ivoire.
Write to Maddison Elliott at Mining.com.au
Images: Aurum Resources
