JOHANNESBURG (miningweekly.com) – TSX-V- and Frankfurt Stock Exchange-listed Nexus Gold has entered into a letter of intent (LoI) with Belemyida to acquire the right to earn up to a 100% interest in the Rakounga gold property, which is adjacent to its Bouboulou project, in Burkina Faso.
The 250 km2 Rakounga property borders Bouboulou on the west and south sides and hosts the Bouboulou 1 gold showing, which is the southern extension of the Bouboulou 2 trend. Bouboulou 1 is an active orpaillage with shaft workings that extend down by about 80 m.
Under the terms of the LoI, Nexus will have the option to acquire a 90% interest in the property in exchange for $400 000 in cash and 575 000 Nexus shares. The consideration is payable in tranches over a period of three years.
Nexus will then have the option to acquire the remaining 10% interest in the property for $1-million in cash and a 1% net smelter return royalty.
“This is a substantial addition to the land package at Bouboulou, effectively making the project almost 300 km2 in size. The acquisition allows us to follow the Bouboulou 2 and Pelatanga-Rawema trends to the southwest.
“This addition is important when you consider how this might influence the goal of establishing a resource at Bouboulou. There is significant artisanal activity in this new area which indicates gold mineralisation continues along the established trends for some distance.
“Our exploration programmes will determine to what extent and, obviously at what economic level, but we are excited at the potential value this strategic addition brings to the company's growing portfolio. We are looking forward to executing the definitive agreement in the coming weeks,” said Nexus president and CEO Peter Berdusco.