https://www.miningweekly.com

Cradle Arc disposes of Burkina Faso subsidiary owing to deteriorating security

4th July 2018

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

Font size: - +

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.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION