ASX-listed Golden Rim Resources will sell its Kouri and Babonga gold projects, in Burkina Faso, to BAOR – a mining company based in the West African country – for $15.5-million, or about A$22.3-million.
The funds are payable in four tranches, with the first $600 000 payment due within 15 business days and the second payment of $5.4-million due within 30 days.
A further $6-million payment is due within six months and the final tranche of $3.5-million within 12 months.
Golden Rim will use the proceeds to advance its 930 000 oz Kada gold project, in Guinea.
“Securing this deal to divest our noncore Burkina Faso gold assets is a fantastic outcome for Golden Rim and our shareholders that looks to deliver immediate and impactful value from projects which are no longer part of our core operations.
“While we have been focussed on our transformational new Kada oxide gold project in Guinea, our projects in Burkina Faso have been sitting on the backburner and are attracting little market value,” comments Golden Rim MD Craig Mackay.
He adds that the proceeds will enable the company to accelerate its activities at Kada “and ensure aggressive drilling and exploration to build our resource base without further dilutionary capital raising for the foreseeable future”.