Middle Island to exit West Africa as focus shifts to Australia project
JOHANNESBURG (miningweekly.com) - ASX-listed Middle Island (MDI) has signed a heads of agreement (HoA) to sell its remaining gold interests in West Africa, as its focus shifts to Western Australia.
The HoA with TSX-V-listed Tajiri Resources grants that company an option to acquire a 100% interest in the Reo gold project, in Burkina Faso.
The commercial terms involve aggregate cash payments to MDI of $335 000 and the issue of five-million shares, representing 8% of Tajiri's then post-issue expanded capital, plus a 2% net smelter return (NSR) royalty, which can be purchased by Tajiri for $5-million.
At first, Tajiri will pay MDI $35 000 on execution of the HoA in return for a three-month exclusivity period in which to complete its due diligence. When completed, Tajiri would pay a further $150 000 and issue to MDI 2.5-million Tajiri shares.
By that agreement, MDI will grant Tajiri an exclusive option to purchase MDI's entire interest in the Reo project over 18 months. During the option term, Tajiri must pay all expenses associated with maintaining the Reo project permits in accordance with Burkinabe law.
The transaction structure further allows MDI to retain a significant indirect interest in the upside potential of the Reo project.
"The full equity component, which will represent some 8% of Tajiri's issued capital on a fully diluted, post issue basis, also offers shareholders considerable exposure to Tajiri's highly prospective gold project interests in Guyana.
"On completion, the Reo project transaction will represent the divestment of Middle Island's remaining gold interests in West Africa, allowing the company to fully focus on its advanced Sandstone gold project development in Western Australia," MDI MD Rick Yeates said.
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?
Receive 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)
➕
Recieve 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
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation