Castle Minerals (ASX:CDT) has executed a share purchase agreement with African Resources to acquire the remaining 10% interest the group has in UK-incorporated Mineralis, as part of its strategy to strengthen its commitment in Côte d’Ivoire.
Mineralis holds a farm-in and joint venture agreement with African Resources over a granted exploration permit covering 343.1km2.
Under the agreement, Mineralis may solely fund up to $1.266 million in exploration, development, and operating costs to earn up to a 90% interest. Upon earning 90%, the permit will be transferred to a joint venture company on a 90:10 basis.
As part of the share purchase agreement, Castle will issue 583,333 shares and 1 million unlisted options exercisable at $0.12 expiring on 31 May 2028. The company will also issue performance rights subject to achieving resource milestones.
Castle, which has a market capitalisation of $9.68 million, will also pay African Resources $37,500 upon achieving the first milestone and $62,500 on completing the second milestone.
Executive Chairman Stephen Stone says the company looks forward to starting exploration on the ground as soon as the transaction settles.
“By securing full ownership of Mineralis we have strengthened our commitment to exploration in Côte d’Ivoire, one of West Africa’s most prospective gold regions,” Stone says.
Mineralis also holds exclusive options to earn interests in a further six permit applications, including the Northern permit group which covers 1,606km2 and the Southern permit covering 236km2.
Castle Minerals is actively exploring a portfolio of projects in Western Australia and Ghana.
Write to Aaliyah Rogan at Mining.com.au
Images: Castle Minerals
