- Golden Rim Resources (GMR) executes a binding agreement for the sale of its Kouri and Babonga gold projects in Burkina Faso for $22.3 million
- Private Burkinabé mining company, BAOR SARL is set to take over the gold assets via four staged cash payments over 12 months
- The proceeds from the transaction will be used to advance the company’s new Kada oxide project in Guinea
- Managing Director Craig Mackay says securing the deal to divest the company’s non-core gold assets is a “fantastic outcome” for GMR, as well as its shareholders
- Golden Rim shares are trading 29 per cent higher at 6.2 cents at 10:52am AEST
Golden Rim Resources (GMR) has executed a binding agreement for the sale of its Kouri and Babonga gold projects in Burkina Faso for $22.3 million.
Private Burkinabé mining company, BAOR SARL is set to take over the gold assets through four stages of cash payments, with the first $860,000 due within 15 business days, and the second $7.7 million due within 30 days.
Any late payments will incur an eight per cent interest, and if full payment isn’t made within 30 days, GMR may terminate the agreement.
The proceeds from the transaction will be used to advance the company’s new Kada oxide project in Guinea where it maintains its focus.
Managing Director Craig Mackay said securing the deal to divest the company’s non-core gold assets is a “fantastic outcome” for GMR, as well as its shareholders.
“While we have been focussed on our transformational new Kada oxide gold project in Guinea, our projects in Burkina Faso have been sitting on the backburner and are attracting little market value.
“With the sale funds from these projects, we can accelerate our activities at Kada and ensure aggressive drilling and exploration to build our resource base without further dilutionary capital raising for the foreseeable future,” he said.
The Kouri project has an indicated and inferred mineral resources of 50 megatons at 1.3 grams of gold per tonne for two million ounces, and recent exploration has located several high-grade gold shoots.
At Babonga, GML has discovered gold mineralisation in bedrock for over one kilometre.
Together, Golden Rim said the two projects provide an “exciting opportunity” for an emerging mining company such as BOAR SARL.
Golden Rim shares were trading 29 per cent higher at 6.2 cents at 10:52am AEST.