Hamak Strategy (LSE:HAMA) shares traded higher on Wednesday, up 10.5% to 1.15p, after it announced the signing of a binding term sheet to acquire the Akoko gold project in Ghana, which contains an inferred resource of 276,500 ounces.
The agreement, with CAA Mining, which holds the rights to purchase the licence from Topago Mining.
Initial due diligence by Hamak returned a revised resource of 252,659 ounces using a conservative modelling approach, and now the company will pay £20,000 for exclusivity and plans to invest at least £500,000 in exploration and feasibility work during 2026.
"Hamak has secured the binding rights to acquire a high-potential gold project in the heart of one of the most prolific gold areas in West Africa," said executive director Karl Smithson.
“The current Akoko gold resource of over 250,000 ounces provides a great opportunity for Hamak to quickly assess the economic viability of a low-cost open pit mining operation."
"The relative acquisition cost of US$8 to 10 per ounce of gold, we believe, provides shareholders with a significant value accretive transaction opportunity, particularly considering the current strong and positive outlook for the gold price."