TORONTO (miningweekly.com) – West Africa-focused gold explorer Sarama Resources on Monday reported that Acacia Mining (formerly African Barrick Gold) had satisfied the conditions precedent of an agreement that would see Acacia earn a 70% interest in the South Houndé project, in Burkina Faso.
Under the terms of the agreement, Acacia could earn up to a 70% interest in the project by satisfying certain conditions. These included funding earn-in expenditures of up to $14-million over a four-year earn-in period and the right to acquire an additional 5% interest, for a total 75% interest in the project, after declaring a minimum mineral reserve of 1.6-million ounces of gold.
To this end, Sarama had received payment of $1-million from Acacia and the TSX-V had approved the transaction to close.
The South Houndé project comprised seven contiguous exploration licences spanning 814 km2.