Africa-focused base and precious metals exploration and production company Cradle Arc has disposed of its operating subsidiary Société Miniére de Kerboulé (SMK), in Burkina Faso, which holds the wholly-owned exploration licences of Arae and Gassel-Manere, together comprising the Kerboulé gold project.
Arae and Gassel-Manere are both early-stage exploration licences located in northern Burkina Faso where historically, limited exploration work has been performed. Since 2015, access to complete further proposed exploration work has been hampered by the deteriorating security situation in the area, where armed extremist groups have been operating.
Under the terms of the share transfer agreement, notional consideration of $1 has been paid to the Aim-listed company for the entire issued share capital of SMK. The buyer has also agreed to assume all ongoing operating costs and SMK's liabilities, in consideration for Cradle Arc providing a one-off payment of 10-million francs, or about $17 700, to the acquirer.
Earlier this year, Cradle Arc entered into an option agreement pursuant to which it granted Singa Holdings Zambia Private an option to establish a joint venture (JV) and/or an option to acquire the entire issued share capital of Luiri Gold Mines, the company's wholly owned subsidiary, which holds its Matala and Dunrobin gold assets in Zambia.
In accordance with the terms of the agreement, the exclusive JV option was due to expire on June 30, with the share option due to expire on July 1.
While the parties continue to work to conclude a transaction, Cradle Arc has granted Singa a nonexclusive option on broadly the same commercial terms as the original agreement, save for the terms relating to exclusivity.