PERTH (miningweekly.com) – Junior Mako Gold has inked a definitive sales agreement to divest of its Niou permit and Niou Sud permit, in Burkina Faso, to Nord Gold SE (Nordgold).
Under the terms of the sales agreement, Mako will receive $700 000 in up-front cash, and will retain a 1% net smelter royalty if Nordgold discovered a gold resource of at least two-million ounces and advances the project to production.
Nordgold has the option to purchase the net smelter royalty at any time for $4.5-million.
Mako on Tuesday told shareholders that divesting of the Niou project allowed the company to focus its exploration efforts and capital on its Napie project, on Cote d’Ivoire.
“The signing of a sale agreement is a step towards reaping the financial benefits of the sale and our commitment to focus our exploration efforts on our flagship Napie project,” said MD Peter Ledwidge.
“The proceeds from the sale, in addition to the proceeds from our recent placement, will significantly strengthen our cash balance and will finance drilling activities so that Mako can deliver a maiden resource, while also advancing the prospects on the Napie project.”