Mako Gold Ltd (ASX:MKG) has completed a sale and purchase agreement with Perseus Mining Ltd (ASX:PRU, TSX:PRU, OTC:PMNXF), acquiring a further 39% of the Napié Gold Project in Côte d’Ivoire to bring its ownership stake in the project to 90%.
An established West African gold producer in its own right, Perseus Mining will receive 13.8 million Mako Gold shares at an issue price of $0.101 each – subject to a 12-month voluntary escrow. The equivalent 2.94% holding, well see Preseus emerge as a strategic shareholder in Mako Gold.
MKG sees the execution of the agreement, especially Perseus’ investment in MKG shares, as an endorsement of the 100% owned Korhogo Project nearby, and the company’s exploration and management team.
The acquisition agreement also contains two milestone payments;
- $2.4 million, payable in cash or scrip (MKG’s discretion) following the delineation of a 1-million-ounce measured and indicated mineral resource at Napié, and;
- Further $2.4 million payment under similar conditions (PRU’s discretion) upon first sale of gold doré or ore extracted from Napié.
Prior to the execution of this agreement, Mako was earning a 75% interest in Napié under a farm-in and joint venture (JV) agreement with Occidental (NYSE:OXY), a Perseus Mining subsidiary.
Since its IPO in 2018, Mako has made material progress on the Napié Project, completing its first stage earn-in equity of 51% early in July 2019 (involving exploration spend of US$1.5 million over a 3-year period).
More recently, the company outlined an 868,000-ounce gold inferred mineral resource estimate (MRE) at the Tchaga and Gogbala prospects, with several more high-grade discoveries offering more exploration upside.
With the resolution of this transaction, Mako Gold will hold 90% ownership in Napié, with the remaining 10% held by African American Investment Fund SA (AAIF).