Perseus will present Orca with a $5 million short-term mortgage facility for exploration and improvement of the Block 14 gold mission. The debt facility is because of be repaid on the finish of June, with curiosity charged at a price of seven.5% a yr.
The corporate revealed it has been in talks with Orca to probably purchase the entire junior’s excellent securities. These negotiations are ongoing, Perseus mentioned.
Block 14 is an open reduce gold mission with the potential to provide 200,000-300,000 ounces yearly throughout its 13 yr mine-life.
Given Perseus’ curiosity and historical past in Côte d’Ivoire, the corporate’s essential goal could also be the Kone project, positioned about 350 km north-west of Yamoussoukro, the nation’s political capital.
Scoping work on the asset has proven its potential as a 15-year, 200,000 plus ounces per yr operation, which is anticipated to churn out greater than 300,000 gold ounces every year throughout its second and third yr of manufacturing.
Perseus has not too long ago achieved an annualized gold manufacturing price of 500,000 ounces of gold per yr from its three current working mines: Edikan in Ghana, and Sissingué and Yaouré in Côte d’Ivoire.
The miner’s CEO Jeff Quartermaine famous that whereas Perseus expects to have the ability to preserve this stage of manufacturing based mostly on exploration success round its current gold mines, it’s all the time searching for to establish worth accretive inorganic development alternatives.
“We consider that Orca might symbolize such a possibility,” Quartermaine mentioned.
Resolute Mining, in flip, said that the C$0.44-a-share sale was a part of its strategic deal with core working property, including it will assist to strengthen its steadiness sheet.