Many Peaks Minerals (ASX:MPK) has signed an option agreement to acquire 100% of Atlantic Resources, which owns the Baga Gold Project in Côte d’Ivoire, thereby expanding its landholding in the country by 50% to 1,919km2.
The Baga Gold Project comprises two permits covering 644km2 in eastern Côte d’Ivoire. The permits cover an underexplored region of structural complexity thought to be highly prospective for orogenic gold deposits.
To secure the exclusive 24-month option, Many Peaks — which has a market capitalisation of $14.21 million — will pay US$40,000 ($60,180) upon signing and issue 500,000 shares to Atlantic.
Should the option not be exercised, or the option is terminated within the first 12 months of signing, Many Peaks will be required to issue to Atlantic an additional 500,000 ordinary shares.
Exercise of the option is subject to certain conditions — including the completion of due diligence and the receipt of necessary approvals — and may be undertaken within the 24-month period by issuing 6 million shares to Atlantic.
From there, Many Peaks has agreed to pay Atlantic a milestone payment of US$1 ($1.50) for each ounce of gold in a maiden resource estimate, capped at US$1 million.
Many Peaks plans to conduct a comprehensive exploration program to assess the resource potential during the option period. The company will begin surface geochemistry survey programs, consisting of mapping and rock chip sampling, concurrent with a comprehensive stream sediment sampling program.
Executive Chairman Travis Schwertfeger says the company has identified another opportunity that bolsters its pipeline of projects for growth.
“The Baga Gold Project is complementary to the existing portfolio in Côte d’Ivoire, providing several operational synergies delivering opportunities for an increase in positive results to the market and significant leverage to adding value through exploration success,” he says.
“Located in a region that has demonstrated its potential to host world-class gold deposits, this acquisition aligns with our commitment to adding shareholder value through innovative and cost-effective exploration, discovery, and resource development.”
Write to Aaliyah Rogan at Mining.com.au
Images: Many Peaks Gold
