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Gulf takes Ghana gold stake
GULF Industrials has signed a deal to earn a 70% stake in a Ghanaian gold exploration project located in an area recently opened to large-scale licences.
GoldGulf IndustrialsGhana
Gulf will form a joint venture with Ghanaian company Cassius Mining to earn the stake in the 3.5sq.km Gbane project area in the nation’s northeast, close to the border with Burkina Faso.
The project is located adjacent to the producing Shaanxi gold mine near Bolgatanga in Northern Ghana and is along strike from Cardinal Resources’ Namdini project.
The Ghanaian government has recently rezoned a series of mineral licences in the area, changing it from an area restricted to small-scale mining by local operators to a large scale mining zone open to foreign investment.
Previously targeted by artisanal miners, Gulf said there was “significant potential” for the discovery of both large-scale open pit and high grade underground deposits – targeted with more sophisticated machinery.
Gulf will earn an initial 20% stake in the project through the payment of $A1 million and the issue of 75 million shares and 300 million options exercisable within 24 months.
It may then earn another 5.55% interest in the project for every $1 million contributed to the project, increasing its stake to 70% on the spending of $9 million.
The company will also have the option to take its stake to 100% within 12 months of completing the earn-in after having the project independently valued.
Gulf raised $6.7 million through the placement of 837.5 million shares at 0.8c each to fund the deal, with the company expected to immediately spend $3 million on geochemistry, metallurgy and aircore and reverse circulation drilling, giving it a 36.65% stake in the project.
The company expects results from a soil sampling and geophysics program will be received by mid-year and to start its stage one drilling program early in the third quarter.
Gulf said the deal would be subject to shareholder approval due to the fact that both it and Cassius had two common directors, with the matter to be proposed at an upcoming shareholder meeting.
Shares in the company rose 11.1% to 1c in morning trade, valuing the company at $35.7 million.
The company’s other major focus is the Soalara limestone project in Madagascar, where it plans to start a drilling program during the March quarter.
