TSX-V-listed Diamond Fields Resources (DFR) has announced the acquisition of privately owned Moydow Holdings, which holds interests in a number of West African gold exploration projects.
Through the acquisition, DFR will gain a right to an 80% controlling stake in an advanced exploration stage gold project, Labola, in Burkina Faso and exposure to minority, joint venture interests in projects located in Mali.
“By combining Moydow’s strong, gold-focused operational competence in West Africa with DFR’s access to financial markets and development skills the company expects to rapidly progress the prospective Labola project,” said DFR CEO Sybrand van der Spuy.
The company aims to report a maiden resource estimate for Labola by the end of 2021.
A dedicated team of six geologists, led by David Reading, is working on the project.
“This is a unique opportunity for investors to gain access to an advanced exploration project, Labola, in a highly prospective region, with an extensive database of historic exploration work. There are multiple targets for further expansion on Labola, which we expect to aggressively pursue. Historic work on the project will enable us to accelerate the reporting of a maiden resource estimate and further drilling is expected to increase the resource over time as targets are drilled,” commented Reading.
The transaction is expected to close in the first quarter of 2022.