16th Oct 2014 08:27
LONDON (Alliance News) - Golden Saint Resources Ltd Thursday said it had agreed to sponsor another two artisanal miners in Sierra Leone holding a combined five small mining licenses, a deal that comes after a previous deal struck with an artisanal miner yielded diamonds.
In a statement, the company said it had reached a deal with Konneh Morrison from the Southern Chiefdom of Makpele, Ngelehun, who was granted three artisanal mining licences of about 0.005 square kilometres each in the village of Ngelehun, to sponsor the alluvial diamond mining work on the areas.
It also reached an alluvial mining deal with Kamara Baimba from the same chiefdom, who was granted two artisanal licences of about the same size in the same village.
In August, Golden Saint had struck a deal with Maluei Mohamed from the Southern Zimmi Chiefdom of Makpele, and the company's artisanal team found four yellow stones with approximate sizes of 2.3 carats, 4.20 carats, 10 carats and 10.34 carats within weeks.
It had said it was considering sponsoring other artisanal miners in the area as a result.
"The decision for (Golden Saint) to sponsor the work was made following the recommendation of Golden Saint's local Managing Director, Timothy Bangura following initial sampling work on the nearby Zimmi Areas which are already being sponsored by (Golden Saint)," the company said in a statement.
It said that under a deal with the chiefdom's speaker representing both the latest landowners, the company has agreed to be responsible for the mining operations on the land, including renewing the licenses when required, in return for full control of the mining and being sold all the diamonds and gold found. The sale proceeds from and stones or gold found in the initial gravel processing will be split 50-50 between company and landowner, and proceeds from stones or gold found in the subsequent mining operation will be split 70-30 between company and landowner.
Golden Saint has promised to use some of its proceeds to build and improve infrastructure in the area.
It is also currently also negotiating with local suppliers to buy a separate washing plant for the artisanal areas.
Golden Saint Resources shares were up 1.4% at 1.85 pence Thursday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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