JOHANNESBURG (miningweekly.com) – Tanzania-focused gold miner Acacia Mining is expanding its exploration portfolio in Kenya.
It has entered into an agreement with AfriOre International to increase its ownership in two licences covering the majority of the West Kenya project area from 51% to 100% in exchange for $5-million.
The West Kenya project is made up of two joint ventures (JV) – the West Kenya JV and the Advance Gold JV. The West Kenya JV with AfriOre comprises two licences that cover the majority of a 1 650 km2 project area, which is host to the Liranda Corridor – the most advanced exploration prospect.
LSE-listed Acacia continues to intersect high-grade gold zones at the Bushiangala and Acacia prospects along the Liranda Corridor where drilling is indicating the potential for a new gold camp.
“We are greatly encouraged by our continued exploration success in Kenya. Our systematic approach to exploration and drill targeting, as well as taking the decision to drill deeper holes early, has resulted in the potential for an exciting new discovery.
“As a result, we have moved to consolidate our position in the project at this stage to ensure our shareholders will be able to fully benefit if the project continues to progress,” Acacia CEO Brad Gordon said in a statement on Monday.
The Advance Gold JV comprises three licences. Acacia currently owns 85% of the JV and is earning additional equity in the project with Advance Gold, the JV partner, electing not to contribute to the current exploration programmes.