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Asara Resources (ASX:AS1) has announced its sale of its Burkina Faso assets for US$2.2M in cash.
The funds will go towards the advancement of Asara’s Kada gold project in Guinea – a jurisdiction somewhat more stable. The company will also pay off debts with the funds.
Expressed in Australian dollars, the company is to receive $3.25M in cash. Asara already has US$0.55M in its coffers as an upfront payment.
A second US$0.55M will come to the company upon execution of a Share Purchase Agreement (SPA) with private explorer BIC West Africa.
The two projects BIC has picked up are Asara’s Kouri and Babonga projects.
But both projects are part of a troubled history for Asara, as far as trying to get rid of them goes.
Back in 2022, when Asara was called Golden Rim, it announced to the market that it was going to sell both assets for US$15M. Two years later, it’s still trying to pawn them off – and at a far lower cost.
All in all, Burkina Faso is a notoriously difficult place for foreign companies to do business.
“The BIC group have been making great progress on their other assets within Burkina Faso and we are confident that they are the right group to take exploration at Kouri and Babonga further for the benefit the local community and government of Burkina Faso,” Asara MD Tim Strong said.
“We wish them well with their exploration efforts.”
AS1 last traded at 0.9cps.
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