Panthera Resources PLC (LON:PAT) shares advanced on Wednesday as it inked a deal to divest its interests in the Labola and Kalaka gold projects, in Burkina Faso and Mali respectively, into Moydow Holdings Limited - a vehicle in which the company will retain a significant stake.
Moydow already has interests in three other African gold projects, with acreage in Nigeria.
The deal sees Panthera receive US$350,000 in cash (paid in future tranches) and 3mln shares in Moydow.
Panthera will also subscribe for US$1mln of new Moydow shares, priced at US$1 each, and it will receive an option over a further 500,000 new shares (also priced at U$1 each).
"We remain highly enthusiastic on the outlook for the Labola and Kalaka projects,” Mark Bolton, Panthera managing director said in a statement.
“The Moydow transaction provides the necessary finance to progress the Projects and the Moydow team has the technical ability and good track record in West Africa to enable rapidly progress.
“Panthera's significant ongoing shareholding in Moydow ensures that the company will benefit from any success derived from the planned work programmes, while not diluting shareholders' exposure to the company's other assets, principally the Bhukia JV project,” he added.