Perseus Mining (ASX/TSX: PRU) has announced that it has entered into an agreement to take a 19.9% stake in and enter into a strategic alliance with Australian-listed Burey Gold Ltd (ASX: BYR), an exploration company with a focus in Guinea, West Africa.
Perseus will initially subscribe for 10.4m shares in Burey at a cost of $418,700, with 10.4m attaching options. Subsequently and, subject to Burey receiving the necessary regulatory approvals, Perseus will subscribe for a further 24.3m shares at a cost of $973,300 with 24.3m attaching options.
Mark Calderwood, Perseus Mining's Managing Director, commented, “Guinea covers a significant part of one of the most prospective gold regions in West Africa. Burey has several prospective projects and the ‘in country’ experience required to enhance and grow the portfolio. In addition to the cash investment Perseus will provide high level personnel support and a sounding board for technical initiatives."
Guinea is currently the fourth largest gold producer in Africa (23.4mt in 2008).
Burey has several projects with gold and gold, uranium and copper mineralisation, these include:
At the Balatindi project (part of the Kerouane group), Burey and previous explorers have identified a primary Au, U, Cu mineral occurrence which Burey believes is of IOCG affinity.
The Mansounia project contains a low grade, near surface laterite/saprolite gold deposit with indications of higher grade source zones.
The last round of RC drilling completed at Mansounia in 2008 included intercepts of 67m at 2.03g/t, 53m at 1.07g/t and 39m at 1.11g/t Au at a new prospect called Intermediate Creek.
Limited diamond drilling below the main laterite/saprolite profile included intercepts of 7m at 4.17g/t and 13m at 3.00g/t Au.
Burey has a geological team with extensive experience in Guinea and neighbouring countries in West Africa and Burey is well positioned to take advantage of the improving political stability in Guinea.
For Perseus the investment allows exposure to the prospectivity of Guinea without distracting the Company’s exploration management and the agreement gives Perseus the first right of refusal in relation to the sale or farm-out of Burey’s mineral interests in West Africa. The investment will enable Burey to step up plans for drilling, regional exploration and project acquisition.