PERTH (miningweekly.com) – Uranium developer Boss Resources has struck a A$10-million deal with its joint venture partner Teranga Gold to divest of its interest in the Golden Hill and Gourma projects, in Burkina Faso.
Under the terms of the transaction, Boss will sell its shares in Boss Minerals and Askia gold, which holds its 49% interest in the two projects, to TSX-listed Teranga.
Teranga previously had the right to increase its 51% stake and earn up to an 80% interest in each project upon delivery of a feasibility study on either project and the payment of A$2.5-million.
“We are really pleased to have executed this deal with Teranga, a company with which we partnered to advance Golden Hill,” Boss MD Duncan Craib said on Thursday.
“We see this as a win-win for both companies as it will allow us to focus on our Honeymoon uranium project, while Teranga is much better placed to follow the gold assets through to production.”
Teranga president and CEO Richard Young told shareholders that Golden Hill was one of West Africa’s most exciting exploration projects, as well as an important part of the company’s vision of becoming a multi-asset, mid-tier gold producer.
The Golden Hill property comprises three adjacent exploration permits covering 470 km2 in the central part of the Houndé Greenstone Belt in southwestern Burkina Faso.
The Gourma property is at an earlier stage of exploration and consists of six contiguous exploration permits covering a total area of about 1 300 km2 in eastern Burkina Faso.
Craib said that the proceeds from the sale would help Boss ensure the Honeymoon project was production ready, once the uranium price hit target, strengthening the company’s balance sheet and taking it closer to becoming Australia’s next uranium producer.