7th Nov 2016 08:47
LONDON (Alliance News) - Sula Iron & Gold PLC on Monday said the government of Sierra Leone has renewed its mineral exploration licence for the site in which its Ferensola gold project is located.
The multi-commodity exploration company said the exploration licence EL54/2011, which is held by its Sierra Leone subsidiary Blue Horizon SL Ltd, was renewed for an initial period of around three year to August 22, 2019.
Upon expiration of this initial term, it may then further extend the licence for an additional two years to August 22, 2021, Sula said.
The licence comprises Sula's principal asset and includes the group's 153 square kilometre Ferensola gold project. The licence is located in the northern province of the Republic of Sierra Leone and is "identical in terms of area covered" to the licence granted in August 2011.
Subsequent renewals following the aggregate five-year period will be subject to further negotiations with the government of Sierra Leone at the appropriate time, Sula said.
"This licence renewal is a significant step for the Ferensola gold project, recognising the progress that we've made to date and underpinning our proposed work programme for this excellent project. The efficiency of the government of Sierra Leone is to be applauded as it provides further investor certainty for the ever developing Sierra Leone mining sector," said Sula Chief Executive Roger Murphy.
Shares in Sula were up 0.8% at 0.24 pence on Monday morning.
By Hannah Boland; [email protected]; @Hannaheboland
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