- Golden Rim Resources (GMR) signs binding agreement to sell its Kouri and Babonga gold projects in Burkina Faso for $22.3 million
- Private Burkinabé mining company, BAOR SARL set to take over gold assets via four cash payments spread over 12 months
- Proceeds from the transaction will be used to advance the company’s new Kada oxide project in Guinea
- Chief Executive Craig Mackay said the completion of the agreement to divest the company’s non-core gold assets is a “fantastic outcome” for GMR, as well as its shareholders.
- Golden Rim shares are trading up 29% to 6.2 cents at 10:52 a.m. AEST
Golden Rim Resources (GMR) has signed a binding agreement to sell its Kouri and Babonga gold projects in Burkina Faso for $22.3 million.
Burkina Faso’s private mining company, BAOR SARL, is set to take over the gold assets in four stages of cash payments, with the first $860,000 due within 15 working days and the second $7.7 million due within 15 business days. 30 days.
Any late payment will incur eight percent interest, and if full payment is not made within 30 days, GMR may terminate the contract.
Proceeds from the transaction will be used to advance the company’s new Kada oxide project in Guinea, where it maintains its focus.
Chief Executive Craig Mackay said the completion of the agreement to divest the company’s non-core gold assets is a “fantastic outcome” for GMR, as well as its shareholders.
“While we have been focused on our transformational new Kada gold oxide project in Guinea, our projects in Burkina Faso have remained on the back burner and are attracting little market value.
“With the sale funds from these projects, we can accelerate our activities at Kada and provide aggressive drilling and exploration to develop our resource base without further raising dilutive capital for the foreseeable future,” he said.
The Kouri project has indicated and inferred mineral resources of 50 megatonnes at 1.3 grams of gold per tonne for two million ounces, and recent exploration has located several high-grade gold deposits.
At Babonga, GML discovered gold mineralization in bedrock over more than a kilometer.
Together, Golden Rim said the two projects offer an “exciting opportunity” for an emerging mining company such as BOAR SARL.
Golden Rim shares were trading up 29% at 6.2 cents at 10:52 a.m. AEST.