Canyon Resources (ASX: CAY) is fresh from a $1.4 million placement at a 9.4% premium to the market, and has now entered into an agreement to acquire the Wilier Project in eastern Burkina Faso.
The project is located in the Fada N’Gourma greenstone belt, and comprises two granted permits totalling 490 square kilometres.
Highlighting the prospectivity of the area, extensions of the belt host the 2.5 million ounce Samira Hill gold mine and the 1.1 million ounce Youga gold mine.
Consideration for 100% ownership of Wilier is staggered, with US$120,000 upon the signing of the agreement, with a further US$100,000 payment on both the first and second anniversary, with an additional US$80,000 on the third anniversary.
The acquisition would allow Canyon to hold exploration permits over more than 3000 square kilometres in the country.
The recent $1.4 million placement was primarily subscribed by Canadian based Dynamic Precious Metals Fund, which is part of the Goodman and Company, Investment Counsel Ltd group - which holds more than C$12 billion in assets.