Golden Rim Resources (ASX: GMR) will shift its entire focus to its highly prospective gold projects in Burkina Faso with the proposed US$4.4 million divestment of its Mali assets.
The deal with Sandeep Gold Resources will include Golden Rim’s entire Mali exploration permit portfolio, which includes the Sepola Project in western Mali and the Faraba Project in southern Mali.
This will effect Golden Rim’s withdrawal from operations in Mali, a strategic move that will allow the company to focus on its high priority targets in Burkina Faso.
Together with the funds currently being raised through a placement and rights issue, the cash sale will provide additional funding to conduct aggressive exploration programs on these priority targets.
The sale is subject to Sandeep Gold conducting due diligence on the validity of the permits within two weeks.
Green light for Burkina Faso acquisition
Earlier this week, Golden Rim revealed its plans to proceed with the planned acquisition of a 90% interest in the Korongou gold project in Burkina Faso following successful due diligence.
The 315 square kilometre Korongou Project, which is being acquired from Epsilon Gold Mines, was one of the most sought after gold properties in Burkina Faso.
The project covers part of the highly prospective Birimian greenstone belt in Burkina Faso and is traversed by a significant northeast trending fault that connects to the major Markoye fault system.
This fault controls a number of major gold deposits including the 5 million ounce Kiaka, the 5.2 million ounce Bombore, the 5.6 million ounce Essakane and the 2 million ounce Samira Hill.
More than 70 kilometres of potential gold mineralised structures have been mapped by Epsilon or exposed in artisanal workings within the Korongou permit, and these structures are ready for drilling.
A$2.1M raised, potential $2.3M to come
Golden Rim has completed a share placement of 52.5 million shares at $0.04 each, raising A$2.1 million.
The company is also undertaking a one for nine rights issue at the same price as the placement to raise up to $2.3 million.
These funds will add to the $1.8 million in cash held at the end of the December quarter, providing Golden Rim with a substantial amount of working capital to accelerate Burkina Faso exploration.
The total funds raised by the placement and rights issue will be used to carry out a Definitive Feasibility Study for the Netiana Lodes at the Balogo Project; further exploration programs at the Balogo and Sebba projects; initial acquisition payments for the Korongou Project; and a planned reverse circulation drilling program at Korongou.
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