Panthera Resources PLC (AIM:PAT) revealed mining and exploration company Moydow Holdings Limited has exercised its option to take over the Wuo Land 2 exploration licence, which is a part of the Cascades project in Burkina Faso.
The Wuo Land 2 licence spans 243 square kilometres, encapsulating about 30km of identified mineralisation, including discoveries at Far East Sina Yar and TT13-West, which are planned for future drilling operations.
The Cascades project is owned and managed by Moydow, in which Panthera holds a 20% equity interest.
The operator of the project, DFR Gold Inc (TSX-V:DFR), has an earn-in agreement to increase its stake in Moydow to 80% stake by investing US$18 million in Cascades.
Upon completion of this earn-in phase, Panthera has the option to raise its stake in Moydow from 20% to 30% for US$7.2 million.
Historical drilling efforts have explored the Cascades project area, with over 65,500 metres (m) drilled across multiple campaigns.
These efforts have outlined mineralisation across three primary zones over a 10 km strike length, offering prospects for further exploration and development.
After taking over exploration activities in August 2020, Moydow embarked on a comprehensive exploration strategy, including a reverse circulation (RC) drilling program that culminated in the announcement of the maiden mineral resource estimate in 2021.
This estimate highlighted an indicated mineral resource of 5.41Mt at 1.52 grammes per tonne (g/t) of gold and an inferred resource of 6.93Mt at 1.67g/t.
Panthera is down around 3% on Friday at around 5.58p.