Turaco Gold (ASX:TCG) has secured ministerial approval for the acquisition of an initial 51% of the Afema Gold Project in Cote d’Ivoire, from multinational mining company Endeavour Mining (TSE:EDV).
The country’s Minister of Mines, Petroleum and Energy agreed to extend the existing mining convention that supports the granted mining permit, making up 227km-square of the total 1,267km-square project area.
This provides Turaco with a 3-year period to conduct a new Feasibility Study.
Turaco, which has a market capitalisation of $70.57 million, will now complete the Afema acquisition with customary conditions including share transfer, and appointing Turaco nominees as directors to the project and holding companies.
On completion, Turaco will issue 46.5 million shares to Endeavour, resulting in a US$1.5 million payment.
Managing Director Justin Tremain says this is the start of an ‘exciting’ period for the project as it is rapidly advancing this project in West Africa’s premier jurisdiction.
“Field preparation is already advanced with drilling to commence in the coming days. We expect to have 2 drill rigs turning by mid March 2024.”
In January 2024, the company’s team relocated to the Afema exploration company to facilitate community introductions, camp refurbishment, drill site preparations, and begin geochemical sampling.
A 3,500m diamond core drilling contract has been signed, with the rig expected to mobilise to site next week.
Further, a 10,000m reverse circulation drilling contact is expected to be awarded this week with JORC resource drilling anticipated to begin at the Woulo Woulo discovery within the next 2-3 weeks.
Drill core samples from Woulo Woulo have been expired and received in Perth. Metallurgical testing is currently underway.
Turaco Gold is a gold-focused explorer with a ‘highly prospective’ Birimian greenstone terrain tenement package proximal to ‘major’ mines and discoveries.
As of 31 December 2023, the company had $8.067 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Turaco Gold
