PERTH (miningweekly.com) – ASX-listed junior Equus Mining would sell off its 90% interest in subsidiary Leo Shield Exploration Ghana for some $600 000 as part of its efforts in selling off noncore assets to fund its core exploration activities in Chile.
Equus said on Tuesday that it would retain a 10% interest in Leo Ghana.
Leo Ghana’s activities include the Osenase and Asamankese prospecting licences in the Kibi gold belt, the Pramkese prospecting licence in the Birim diamond field, a 7% interest in the Kwatechi gold joint venture in the Ashanti gold belt and a 0.5% royalty interest in potential future gold production from the Grumesa prospecting licence.
Following the completion of the Leo Ghana sale, Equus would have a cash reserve of some A$1.8-million, which the company said would be sufficient to fund its budgeted corporate and exploration activities for the remainder of 2013, including a 5 000 m diamond drilling programme at the Yerba Buena copper project, in the Naltagua copper district in Chile.
Equus had previously announced that it would fund its core exploration activities in Chile by selling off its noncore assets, including listed shares, gold royalties and an oil drilling rig and exploration camp, which are valued at some A$7-million.
The gold royalty owned by Equus is a 0.5% royalty over the gold production from the 876 km2 Tengrela gold project, owned by fellow-listed Perseus Mining.
The project includes the Sissingue gold mine, where Perseus reported a 1.18-million-ounce resource and a 840 000 oz reserve. To date, Perseus has completed a substantial amount of infill and extension drilling at the project, and a resource upgrade was expected in the current quarter.