West Africa-focussed explorer Oriole Resources is transferring its 90% interest in the Cameroon-based Central Licence Package (CLP) to subholding company NewCo, to enable project-level investment.
The CLP – prospective for a range of commodities, including gold and lithium – comprises five Eastern CLP licences – Tenekou, Niambaram, Pokor, Ndom and Mbe, and the transfer of interest to NewCo will enable Oriole to advance exploration at the project, while reducing equity dilution for shareholders at company level.
Oriole anticipates that its interest in the CLP will grow to a 100% ownership position after resource definition, when contribute or dilute provisions will become active.
In addition, Oriole has signed a letter of engagement with a Canadian investment banking firm to secure $1-million of project-level exploration financing in return for a 10% non-carried interest in NewCo. Closing of the financing is expected in the second quarter.
The investment will be earmarked exclusively for gold exploration, funding Oriole’s proposed work programme on the project and enabling the company to pursue other funding opportunities to further lithium exploration within the CLP.
The Eastern CLP licences were granted for their first term in February 2021, with work conducted there, to date, having identified multiple 2 km- to 3 km-long gold-in-soil anomalies across the project in addition to a 12.5-km-long zone of anomalism at Mbe.
Follow-up rock-chip sampling at Mbe recently returned up to 134.1 g/t of gold from a cross-cutting structural corridor that extends over a strike length of 3 km and over a width of at least 70 m.