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Oklo buys into Mali hype

13th September 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Junior explorer Oklo Resources has signed a deal with TSX-listed Compass Gold Corporation to acquire its Mali subsidiary, which holds six gold prospects.

Compass has agreed to sell its subsidiary, Compass Gold Mali, for some A$4-million along with the provision of a working capital facility. The purchase price would be satisfied through Oklo issuing some 800-million fully paid ordinary shares.

Oklo would also provide a working capital facility of up to A$250 000 to Compass, between the date of the definitive agreement and the closing of the transaction.

Oklo would also foot the bill for the transaction costs.

The ASX-listed junior told shareholders on Friday that the acquisition would result in the company acquiring strategic land-holding in Mali, covering some 1 138 km2. The Compass projects include two advanced projects, both of which have proved to be highly prospective.

Compass placed the assets up for sale after failing to raise funds for their development.

The acquisition was subject to a number of conditions, including due diligence investigations on both sides, and Oklo completing a capital raising of up to A$1.5-million by the end of November.

Regulatory and shareholder approval was also required.

Edited by Creamer Media Reporter

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