21st Jan 2019 11:08
LONDON (Alliance News) - Panthera Resources PLC on Monday said it has the opportunity to acquire the Labola gold project in Burkina Faso from an undisclosed vendor.
Shares in Panthera were up 11% at 2.10 pence on Monday morning.
Panthera has fourth months to undertake technical and legal due diligence on the Labola project.
After the four months of due diligence exploration, there will then be up to five years of resource definition and development. This development depends on whether the "results justify the programmes", and on payments of USD50,000 per annum by Panthera to the vendor.
In that five-year period, Panthera has the option to acquire 100% of the vendor's interest in Labola for USD1.0 million. Annual payments would then cease.
Panthera also would make a USD1.0 million vendor payment after defining a resource of at least 1.0 million ounces of gold.
Prior exploration has found resources of over 600,000 ounces, averaging approximately 1.2 grams of gold per ton of ore. Panthera said these estimates need to be verified and should only be considered as targets.
The vendors also will keep a 1% net smelter royalty on all gold produced at Labola, up to an aggregate USD2.0 million payment.
The Labola project consists of a package of approximately 65 square kilometres of licences that have been mined over at least a 9 kilometre strike.
Historical exploration has been done by mining firms Nordgold SE, High River Gold Mines Ltd, and Taurus Gold Ltd.
"This agreement offers a great opportunity to fast track Panthera's path to an economic resource in Burkina Faso. The large strike extent of artisanal workings and the significant amount of previous drilling significantly de-risks the project and we are optimistic it will allow us to plan a major drill-out for later this calendar year," said Panthera Managing Director Geoff Stanley.
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