Oriole Resources PLC (AIM:ORR) posted an interim profit in the six months to end June 2024 helped by its facility with Lanstead and earn-in payments from BCM.
Pre-tax profits for the six months to 30 June 2024 were £1.15 million (2023: loss of £0.86 million).
BCM paid US$1.5 million upfront at two of Oriole’s licences in Cameroon, Bibemi and Mbe, for a 10% interest in each.
It has the opportunity to earn up to a 50% interest by funding up to US$4 million in exploration expenditure per licence with additional milestone payments once resources at the prospects exceed one million ounces.
Eileen Carr, chairman, said: "The year started on a high note with confirmation of the BCM deals on both the Bibemi and Mbe licences.
“As suspected, this news positively impacted the share price, which in turn significantly increased the monthly proceeds received from Lanstead.
“Despite the initial market misgivings surrounding this financing, it has, in fact, proved beneficial at a time when raising finance in the junior mining sector was all but impossible.
“We reached the first anniversary of the Lanstead transaction in August and the amount received to date is the equivalent of 0.24p per share, significantly higher than could have been achieved in the market in mid-2023.”
Elsewhere, Carr said the recovery of the drill core at Bibemi has been excellent with results pending from the first set of drill holes.
"The areas surrounding BZ1 have the potential to add ounces to the primary open pit, and work is underway to better understand the metallurgy and mineral processing aspects.
“The submission of the application for a gold exploitation permit is the first such submission in Cameroon and I am hopeful that Bibemi will be the first commercial gold mine in country.
"At Mbe, work is progressing towards a maiden drilling programme in the next field season.
“Both Oriole and BCM are excited by the potential of Mbe as the results to date from soil sampling and trenching have been extremely positive.
"In Senegal, our licence was renewed earlier in the year and we are working together with our partners Managem and EMC to assess the best way forward to add value to the licence. We expect to be able to give more clarity on the work programme over the coming months.
"Our partnership with BCM goes from strength to strength, as do our relationships with both BEIG3 in Cameroon and EMC and Managem in Senegal.”