Turaco Gold inks option agreement with Fortuna Silver Mines at Tongon

• Turaco Gold (ASX:TCG) initiates an option agreement with Fortuna Silver Mines for the five exploration permits within the Tongon North Project in northern Cote d’Ivoire
• Fortuna must invest a minimum of US$3.5 million in the Tongon North Project area within three years, with a minimum annual expenditure of US$0.5 million
• Once the Option is exercised, Turaco can choose to establish a joint venture with Fortuna, maintaining a 20% interest, or opt to sell its remaining 20% interest to Fortuna for US$1.5 million in cash
• TCG last traded at 14.5c, at 10am AEDT

Turaco Gold (ASX:TCG) has initiated an option agreement with Fortuna Silver Mines for five exploration permits within the Tongon North Project in northern Cote d’Ivoire, West Africa.

The deal gives Fortuna the option to acquire an interest more than 80% in the five permits that constitute Turaco’s Tongon North gold play on the Ivory Coast.

Fortuna, a notable West African gold producer listed on the TSX and NYSE with a market capitalisation of C$1.2 billion (AUD$1.36 billion), owns the Seguela Gold Mine in Cote d’Ivoire, Yaramoko Gold Mine in Burkina Faso (West Africa), and recently acquired the Diamba Sud Gold Project in Senegal.

“The granting of an option over the Tongon North Project to Fortuna is consistent with Turaco’s steadfast commitment and focus on the Afema Gold Project in southeast Cote d’Ivoire,” Turaco Gold Managing Director Justin Tremain said.

“Turaco is likely to further rationalize its northern Cote d’Ivoire projects but will retain the Eburnea Gold Project, which includes the 100% owned Satama greenfield gold discovery.”

As part of the Option Agreement, Fortuna will provide Turaco with an upfront cash payment of US$100,000 (AUD$150,000) for the option granting an 80% interest in the Tongon North Project.

Fortuna must invest a minimum of US$3.5 million in the Tongon North Project area within three years, with a minimum annual expenditure of US$0.5 million.

Once the Option is exercised, Turaco can choose to establish a joint venture with Fortuna, maintaining a 20% interest, or opt to sell its remaining 20% interest to Fortuna for US$1.5 million in cash.

Fortuna is required to spend a minimum of US$1.25 million on the Tongon North project area before allowing the Option to lapse.

TCG last traded at 14.5c, at 10am AEDT.