PERTH (miningweekly.com) – Gold miner West African Resources (WAF) has completed the acquisition of a 90% stake in the Kiaka gold project, in Burkina Faso.
WAF in October struck a deal with B2Gold and its partner GAMS-Mining F&I to acquire a 90% stake in the project, with the remaining 10% interest to be held by the State of Burkina Faso.
Under the terms of the agreement, WAF would pay $100-million in staged cash and share payments, comprising $55-million, made up of 50% cash and 50% WAF shares to be paid on closing of the transaction, with a further $45-million payment in cash or shares to be paid on the deferred consideration payment date.
A 3% net smelter royalty would also be payable on the first 2.5-million ounces of gold produced from Kiaka, and a 0.5% net smelter royalty on the next 1.5-million ounces of gold produced at the mine, which is located 45 km south of WAF’s Sanbrado project.
Kiaka is a large‐scale, permitted development project containing a 6.8-million-ounce gold mineral resource, and a feasibility study update is underway targeting a 6-million to 8-million processing rate.
Construction early works are expected to start in the first quarter of 2022 including camp, access road and community projects; major works are expected to start in mid‐2022.
“We are pleased to close the Kiaka and Toega transactions and welcome both B2Gold and GAMS as West African shareholders,” said WAF executive chairperson and CEO Richard Hyde.
“During the closing period, WAF repaid the Taurus debt facility in full and elected to buy back the gold offtake agreement, which was associated with the funding package for the construction of Sanbrado.
“WAF is now unhedged with no senior secured debt, has resources totalling 11.9-million ounces of gold and aims to be a 400 000 oz/y gold producer by 2025.”