- Golden Rim Resources (GMR) has successfully completed the first stage of its acquisition plan for the Kada Gold Project in Guinea
- The company now owns a 25 per cent stake after issuing US$2.5 million (about A$3.25 million) worth of GMR shares to the project’s owner, Vetro Gold SARL
- Golden Rim has the option to earn a 75 per cent stake in the project as part of the earn-in and joint venture agreement with Vetro
- More than 33,000 metres of drilling has been completed to date at Kada, with the majority being carried out by Newmont Corporation
- GMR will now carry out its own exploration work and drilling at the project as it aims to progress the asset to a maiden JORC mineral resource
- Shares in Golden Rim Resources have ended the day up 10 per cent, trading at 1.1 cents each
Golden Rim Resources (GMR) has successfully acquired an initial stake in the Kada Gold Project in Guinea.
The company owns a 25 per cent stake in Kada after issuing US$2.5 million (about A$3.25 million) worth of GMR shares to the project’s permit owner, Vetro Gold SARL.
That works out to being 317,203,744 GMR shares, which are priced at approximately one cent each.
Golden Rim and Vetro have signed an earn-in and joint venture agreement which allows GMR to acquire up to a 75 per cent stake in the Kada Project.
The company is interested in the asset as it believes it can be rapidly progressed to a maiden JORC Mineral Resource.
More than 33,000 metres of drilling has been completed to date at Kada, with the majority of the work carried out by gold miner Newmont Corporation.
“We are very pleased to have acquired our initial interest in Kada, which is an advanced gold project with considerable exploration upside and a non-JORC resource area which we expect to rapidly convert to a JORC Mineral Resource with infill drilling,” GMR Managing Director Craig Mackay said.
“It also complements our existing 2 million oz Mineral Resource at our Kouri
Gold Project in Burkina Faso, allowing us to build a strong portfolio of exciting West African gold projects,” he added
The company is planning to carry out a magnetic survey at the site, as well as an auger drill program to define drill targets.
Shares in Golden Rim Resources have ended Tuesday’s session trading up 10 per cent at 1.1 cents each.