Oriole Resources PLC (AIM:ORR), the gold exploration company focused on West and Central Africa, has unveiled a restructuring of its projects in Cameroon.
The company will increase its stake in the Bibemi and Mbe gold licences to 90%, following agreements to buy out local partners’ interests.
The Cameroonian Ministry of Mines has approved the transfer of the Bibemi licence to Oriole's investment subsidiary, OrrCam2.
Additionally, Oriole has agreed to acquire its local partners' equity in Bibemi and Mbe for a total of $139,000.
Once these transactions are complete, Oriole’s ownership of both licences will rise to 90%.
The local partners will retain a net smelter return royalty and 5% of potential milestone payments from BCM International, Oriole’s exploration partner.
BCM International has an option to fund up to $8 million in exploration at the Bibemi and Mbe licences. In return for this investment, BCM can earn up to a 50% interest in each project.
This funding ensures continued exploration and development at these sites, with BCM's initial payment of $1.5 million securing a 10% stake.
This restructuring simplifies the ownership structure and secures substantial financial backing for Oriole, positioning the company for growth as it advances its key assets in Cameroon, said Oriole CEO Martin Rosser.
"Through this wide-ranging agreement, we have moved both Bibemi and Mbe to a 90% ownership position, which we believe is good news for our shareholders as we continue to advance the BCM-funded exploration at both projects," he added.
"As a result, upon completion of the full BCM funding into both projects, Oriole will be an equal partner with BCM, each with a 50% interest,"
"Our local partners will also benefit from participation in any future milestone payments due at each project, in addition to the pre-existing NSR Royalty.
"The importance of good local partners for early-stage exploration companies cannot be stressed enough, and BEIG3 and Roxane continue to be of vital importance to our activities in Cameroon."