- Golden Rim Resources (GMR) loses the opportunity to make $22.3 million through a divestment after a deal to sell its Burkina Faso gold assets falls through
- GMR had signed a binding agreement with BAOR SARL to sell two gold projects in Burkina Faso, but BAOR SARL withdrew from the sale
- It comes after BAOR SARL failed to meet the deadline for first and second payments, before GMR granted it a two-week extension
- Golden Rim had planned to use the money to progress its Kada Gold project in Guinea, which remains its main focus
- GMR shares are down 5.77 per cent, trading at 4.9 cents at market close
Golden Rim Resources (GMR) has lost the potential to make $22.3 million after a deal to sell its Burkina Faso gold assets was scrapped.
GMR was planning to divest its Kouri and Babonga gold projects in Burkina Faso, and had executed a binding agreement with private mining company BAOR SARL, however, Golden Rim today announced BAOR SARL’s financiers withdrew from the sale.
The news came after BAOR SARL delayed both the first and second payment of US$600,000 (A$846,650), due on July 19, and US$5.4 million on July 27 of this year.
GMR then granted BAOR SARL an extension on the payments to Monday, August 15, before announcing to the market today that BAOR SARL was “unable to fulfil its obligations,” and the sale would no longer go ahead.
The company says it will now seek to formally terminate the agreement, but will look for other opportunities for the project.
GMR had planned to use the money from the sale of Kouri to progress its Kada Gold project in Guinea, which is currently the company’s main focus.
GMR shares were down 5.77 per cent, trading at 4.9 cents at market close.