https://www.engineeringnews.co.za

Golden Rim sells Burkina Faso gold project for $10m

Golden Rim sells Burkina Faso gold project for $10m

Photo by Bloomberg

6th February 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) – ASX-listed Golden Rim Resources has signed an agreement to sell its Balogo gold project, in Burkina Faso, to MNG Group of Companies for $10-million.

“The cash price being offered for Balogo represents very good value for the company. It means that upon completion of the sale, the company will have sufficient cash in the bank for ongoing exploration at our exciting Korongou project, in Burkina Faso, and to consider new opportunities for the company,” said Golden Rim MD Craig Mackay on Friday.

Singapore-headquartered MNG would pay Golden Rim $500 000 in cash, which would be held in escrow until the conditions of the sale were satisfied. Upon the satisfaction or waiver of the conditions, which included the transfer of the Balogo exploration permits to MNG, Golden Rim would receive a further $4.5-million in cash.

A further $2-million would be payable on the earlier of the granting of a mining permit, or within 24 months of the conditions precedent being satisfied or waived. In the event that the payment is not made within 24 months, MNG would transfer 49% of its interest in Balogo back to Golden Rim.

Once the project reached commercial production, Golden Rim would receive an additional $3-million in cash. The company would also receive a 1% net smelter royalty on all gold produced at the Balogo project.

The Balogo project currently covers some 360 km2 and has an inferred resource of 850 000 t, grading 6.8 g/t gold for 185 000 oz of gold.

Mackay said that prior to the current commodity price downturn, Golden Rim had envisaged mining the small, high-grade gold deposit at Balogo; however, after the change in economic conditions, funding for the feasibility study at Balogo proved difficult to source.

MNG’s intent for the Balogo project was to start mining the project as soon as possible.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Aqs image
AQS Liquid Transfer

AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa

VISIT SHOWROOM 
SMS group
SMS group

At SMS group, we have made it our mission to create a carbon-neutral and sustainable metals industry.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.079 0.127s - 156pq - 2rq
Subscribe Now