- Mako Gold (MKG) increases its interest in the Napié Gold Project in Côte d’Ivoire to 90 per cent through a binding agreement with fellow ASX-lister Perseus Mining (PRU)
- The agreement aims to simplify the current ownership structure and validates Mako’s exploration and growth strategy
- Perseus Mining has agreed to exchange its 39 per cent interest in the project, for an initial equity consideration and two deferred milestone payments
- Completion of the deal is subject to a number of conditions, including shareholder approval
- Shares are trading 3.6 per cent higher at 8.7 cents each at 10:29am AEST
Mako Gold (MKG) has increased its interest in the Napié Gold Project in Côte d’Ivoire to 90 per cent through a binding agreement with fellow ASX-lister Perseus Mining (PRU).
The company was initially earning up to a 75 per cent interest in the project under a farm-in and joint venture (JV) agreement with Perseus’ subsidiary, Occidental Gold.
Occidental is the registered holder of the Napié Permit, but has an existing JV arrangement with African American Investment Fund, where Occidental holds a 90 per cent participating interest.
Since IPO in 2018, Mako has been able to complete its first stage earn-in equity of 51 per cent early in July 2019, which involved an exploration spend of US$1.5 million (A$1.9M) over a 3-year period.
Now, through a sale and purchase agreement, the companies are aiming to resolve the fragmented ownership structure, with Perseus Mining agreeing to hand over its 39 per cent interest in the project, for an initial equity consideration and two deferred milestone payments.
Mako’s Managing Director, Peter Ledwidge said the deal simplifies the existing JV and provides shareholders with a clearer path to the “commercialisation of this asset”.
“This transaction is a testament to the Mako team for their exploration success at Napié and strategy to unlock further value.”
Further, the company believes the transaction validates its systematic exploration and growth strategy, which aims to extend existing high-grade mineralisation, test multiple high priority regional prospects and to support a future maiden Mineral Resource Estimate.
The initial equity consideration includes 13.8 million shares valued at 10 cents each, which is equivalent to 5.1 per cent of Mako’s issued capital.
The first milestone payment of $2.4 million, payable in cash or scrip, will be at Mako’s election upon delineation of a one-million-ounce measured and indicated resource under the JORC Code at Napié.
Secondly, upon the first sale of gold doré or ore extracted from Napié, $2.4 million will be payable at Perseus’ election.
Perseus will emerge a strategic shareholder of Mako at completion with a 5.1 per cent equity holding.
Completion is subject to a number of conditions, including Mako shareholder approval and Perseus obtaining a decree from the Ivorian Minister of Mines transferring the permit.
Shares were trading 3.6 per cent higher at 8.7 cents each at 10:29am AEST.