The licence for the area, now renamed Senala, will be governed by the new Senegalese Mining Code and will secure the tenure of the licence for up to a further 10 years (plus up to two years special extension), subject to meeting the criteria at each renewal period.
Oriole said new joint venture and side letter agreements have been signed with the company's local partner, Energy & Mining Corporation (EMC). The terms of the agreements are the same as the previous agreements such that Senala remained 85%-owned by Oriole and 15% by EMC.
IAMGOLD Corporation, which has the option to spend up to US$8mln to earn a 70% stake in the project, has completed more than 9,300 metres of drilling at the southernmost Madina Bafé prospect and has now completed a further 3,200 metres of air core drilling at the Saroudia prospect immediately to the north.
“Not only does the new licence provide security of tenure for a minimum of four years, we have been able to retain the entire licence area,” observed Tim Livesey, the chief executive officer of Oriole.
"We look forward to continuing the exploration programme at Senala, in particular at the Madina Bafé and Faré prospects, which have previously delivered best drilling intersections of 9.6 metres at 16.08 grammes per tonne gold and 96 metres at 1.51 grammes per tonne gold respectively. This extensive licence area lies within a highly-endowed gold region of eastern Senegal, where there has been significant interest and M&A activity in recent months,” he added.