Newmont Ventures, a subsidiary of US-based mining firm Newmont, has agreed to make a strategic investment in junior mining company Awalé Resources.
As part of the transaction, Awalé will receive $500,000 in investment pursuant to a private placement. Newmont will hold a 10.49 per cent stake in Awalé post-completion of the investment.
The junior miner plans to use these proceeds to fund the activities at the Côte d’Ivoire project, which currently has two primary targets including the gold-rich Empire corridor and the Sceptre Iron Oxide Copper Gold target.
Furthermore, Newmont Ventures agreed to sign an exploration agreement with a venture option on Awalé’s Odienné Project in north-west Côte d’Ivoire. Newmont Ventures will also make staged exploration funding of up to $15 million to earn a stake of up to 75 per cent in the Odienné Project.
Under the initial phase, Newmont will fund $5 million in exploration expenditures to earn a 51 per cent interest in the Odienné Project within three years from the exploration agreement.
Newmont will make additional funding of $10 million in exploration expenditure and define a minimum 2Moz gold resource under the second phase to earn a further 14 per cent interest in the project.
Exclusive Option for Newmont in Agreement
An exclusive option agreement will then be signed by Newmont for an additional 10 per cent interest in the Odienné Project. If the option is exercised, Newmont’s interest in the project will be 75 per cent. The investment is subject to certain closing conditions, including the approval of the Toronto Stock Exchange.
Awalé Resources CEO Glen Parsons said: “We have always considered Odienné has the potential to produce a Tier One asset which, based on work performed to date, is now supported by Newmont through this transaction.“
“The setting of the Odienné Project has striking similarities to major copper-gold producing districts such as the Carajás and Olympic Dam Iron Oxide Copper Gold provinces in South America and Australia. The 5km-long Sceptre Cu-Au IOCG anomaly provides Awalé an excellent starting point and places us in a unique position to be drill testing targets that have Tier One potential.”
Glen Parsons
Awalé may maintain its 25 per cent project interest by funding its proportionate cost of a feasibility study on the Odienné Project and development of a mine.
“We look forward to developing the Odienné Project into a new mineralised district in West Africa with Newmont,” Glen Parson said.
Over the next 12 months the company plans to undertake permit-wide geophysics including detailed airborne magnetic or radiometric surveys, airborne gravity gradiometry, as well as geochemical and geological mapping surveys. In addition, local targeted programs are planned for the Sceptre prospect with trench and Diamond/RC drill programs.
Previous drilling by Awalé has confirmed high-grade gold mineralization along the regional-scale corridor at Empire, with initial drilling at the Charger prospect and regional soil geochemistry confirming the potential for IOCG mineralization at Sceptre and elsewhere within the Odienné Project.
The combined Odienné East (granted) and Odienné West (application) permits comprise a total of 800 square kilometres of highly prospective but underexplored terrain in northwest Côte d’Ivoire.
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