PERTH (miningweekly.com) – Junior gold developer Manas Resources will grow its exploration position in Cote d’Ivoire four-fold, striking an agreement with gold miner Resolute Mining.
Manas has inked a sales and purchase agreement with Resolute’s subsidiary, Toro Gold, to acquire the shares of two subsidiaries, which results in the acquisition of all of Resolute’s exploration interest in Cote d’Ivoire, which includes a 76.5% interest in a joint venture (JV) with fellow-listed Predictive Discovery, and full interests in various exploration permits and applications.
Manas has also entered into a share sale agreement with Predictive, to acquire 12.5% of its current 23.5% interest in the JV area, allowing Manas an 89% interest in the JV.
Under the terms of the agreement, Predictive’s 11% interest in the JV will be free carried until a decision to mine and the grant of a mining permit. The JV parties’ interest in the project would be diluted pro-rata to account for any government interest, and should Predictive’s shareholding fall to below 10%, its interest would convert to a 1% net smelter royalty.
Manas MD Justin Tremain told shareholders that this was a transformational acquisition for Manas.
“Upon completion of the acquisition, we expect to immediately commence an extensive drilling programme focused on delineating Joint Ore Reserves Committee- (Jorc-) compliant resources and exploring this extensive and highly prospective ground position.”
The agreement covers some 6 194 km2 and takes Mana’s total exploration position in the region to 8 400 km2.
Under the terms of the agreement with Resolute, Manas would pay A$1-million in cash on the completion of the proposed transaction as partial reimbursement for past costs incurred, as well as A$4-million in cash within 12 months after gold production from a project developed within one of the permits being acquired under the Resolute agreement.
The Resolute agreement was subject to Manas shareholder and ASX approvals, as well as Resolute obtaining approvals from its lenders, and Randgold Resources not exercising a first right of refusal over certain exploration permits.
Under the terms of the agreement with Predictive, Manas would issue 35-million performance shares, which will convert to ordinary shares in the company, on the announcement of a Jorc mineral resource of more than 500 000 oz of gold, at a grade of 1.5 g/t or greater.
The company would also issue 65-million performance shares, which will convert to Manas shares, on announcing a Jorc resource at the JV permits of more than one-million ounces of gold, at grades of 1.5 g/t or greater.
The Predictive transaction is also subject to Manas shareholder approval, and any necessary ASX approvals or waivers.