Photo by: Bloomberg
PERTH (miningweekly.com) – The shareholders of Canadian junior Channel Resources have approved the plan of arrangement with ASX-listed junior West African Resources.
Votes representing some 48.52% of the outstanding shares of Channel were cast at a recent shareholding meeting, with 99.68% of the votes cast in favour of the scheme of arrangement.
“The overwhelming vote of approval for the arrangement confirms our belief that the combination of the two companies is in the best interest of shareholders. For our shareholders, the combination of West African represents an opportunity to participate in fast-tracking exploration and potential development of our joint properties located in some of the most prolific gold belts in the world in the mining-friendly Burkina Faso,” said Channel president and CEO Colin McAleenan.
Under the scheme of arrangement, West African was offering one of its own shares for four Channel shares. Channel shareholders would also receive one share purchase warrant for each two West African shares received in the transaction, with the warrant being exercisable at a price of 40c each, for a period of 36 months.
Each outstanding Channel option would also be replaced or exchanged for one-quarter of a West African option.
Channel is exploring for gold at its Tanlouka asset, in Burkina Faso, and also held a mineral-bearing brine property in Canada. West African has a large land position in Burkina Faso, and has identified multiple targets for exploration, including the Boulsa gold project, which hosts the Sartenga prospect.
West African was planning a reverse circulation and diamond drilling programme at Tanlouka as soon as the transaction closed, with the initial drilling targeting near-surface oxide potential, while diamond drilling would test for high-grade targets at depth.
The resource upgrade and scoping study on a low capital expenditure heap leach gold project would be completed by the March quarter.