PERTH (miningweekly.com) – Explorer Manas Resources has abandoned its bid to acquire the Victoria gold project, in Tanzania, after a lack of progress to transfer the licence, as well as challenging conditions facing mining companies operating in the country.
Manas in April last year struck a deal to acquire the Victoria project for a staged cash consideration of $1.8-million and $2-million in shares, subject to licence transfer milestones.
Manas on Friday said that the company was entitled to a repayment of the $800 000 pre-payment made under the agreement, should the vendor group on-sell the Victoria assets to a third party within the next 12 months.
The company would also be entitled to be repaid the funds advanced to the vendor group since March of last year for working capital and exploration activities at the Victoria tenements.
“While it is disappointing that the Victoria gold project acquisition is not proceeding given the significant efforts made by all parties to advance the transaction, we can now be fully focused on our activities in Cote d’Ivoire,” said Manas CEO Philip Reese.
The Victoria gold project includes 38 licences covering 250 km2, hosting multiple drill ready targets and previous resource estimates and technical evaluations, which would provide a fast track to development. The project also included pre-existing environmental permits that would facilitate the rapid approval of mining rights.