West African gold explorer Asara Resources Ltd (ASX:AS1, OTC:GMRMF) advises that it continues to work towards satisfying the conditions precedent outlined in the share purchase agreement regarding the sale of its Kouri Gold Project in Burkina Faso to private gold exploration company BIC West Africa Ltd.
Asara struck the deal with BIC for the sale of its non-core Kouri and Babonga gold projects in July.
Documentation in
Asara has since submitted the required documentation to both the tax authority and the Ministry of Mines in Burkina Faso and is now awaiting their approval to finalise the sale of the Kouri Project.
The company and BIC have agreed to extend the longstop date under the agreement from 60 days to 120 days from the date of its signing to provide for additional time to receive Burkina Faso regulatory approval.
Once all required authorisations have been received from the relevant authorities in Burkina Faso, BIC will pay Asara a completion payment of US$1.1 million. The total transaction involves consideration of US$2.2 million (A$3.25 million).
Asara managing director Tim Strong said: “We have worked alongside BIC to ensure all the relevant paperwork has been submitted to the required authorities in Burkina Faso to facilitate the sale of 100% of the issued capital in Asara’s wholly owned subsidiary Golden Rim Resources Burkina SARL which holds the licences to the Kouri and Babonga projects.
“We are now waiting on feedback and processing from the authorities in Burkina Faso and have agreed to extend the terms of the share purchase agreement to give the authorities sufficient time to process the documents.
“Both Asara and BIC are committed to completing the transaction in a timely matter and we will provide an update to the market in due course on completion of the sale.”