Tietto Minerals Ltd (ASX:TIE) has increased its interest in the Abujar Gold Project’s Mining Licence to 88% as it progresses towards becoming West Africa’s next gold producer, developing the 3.02 million ounces Abujar Gold Project in Cote d’Ivoire.
In December 2020, Côte d’Ivoire’s ministry of mines, petroleum and energy approved a mining licence for Tietto’s 3.02 million ounces Abujar Gold Project within the Abujar Middle tenement.
This tenement is held 100% by Tiebaya Gold Sarl in which Tietto holds a 90% interest and joint venture partners Henri Bamba and M Yao N’Kanza (B&F) holds a 5% interest each.
“Additional value for shareholders”
Tietto managing director Caigen Wang said: “Securing this additional interest in the Abujar Gold Project Mining Licence will create additional value for our shareholders as we move closer to the development of Abujar as West Africa’s next gold mine.”
The company’s board has approved US$2.5 million of the early site works at Abujar including site access upgrade, camp improvement and purchase of long-lead items in anticipation of this final approval and completion of Abujar pre-feasibility study (PFS), which remains on track for delivery in Q1 CY2021.
Following Ivorian mining code
Tietto is working with the Ivoirian Government on terms and conditions for the Abujar Gold Project Mining Convention scheduled for early in H1 CY2021.
As per the Ivorian mining code, Tiebaya Gold is required to incorporate a new Ivorian company to hold the Abujar Gold Project Mining Licence in which the Ivorian Government will hold a 10% free carried interest.
This would reduce Tietto’s interest from 90% to 85% with B&F reducing(collectively) to 5%.
However, Tietto has reached an agreement to acquire an additional 3% interest in the Mining
Licence granted to Tiebaya Gold from B&F to increase the Company’s interest from 85% to 88% in consideration for:
- The issuance of 3,750,000 ordinary shares to each of Bamba and N’Kanza at a deemed issue price of 62 cents per share (B&F Shares);
- The issue of 2,500,000 options exercisable at 62 cents expiring three years from the date of issue to Bamba and N’Kanza (B&F Options); and
- Cash payment of US$200,000 to Bamba and N’Kanza.
The company's licenses across the Cote d’Ivoire.
Abujar Gold Project
The Abujar Gold Project comprises three exploration licences comprising the Abujar South, Middle and North tenements.
Tietto has a 100% interest in the Abujar South tenement, a 90% interest in the Abujar Middle tenement and currently a 15% interest in the Abujar North tenement through its equity interest in Gail Exploration Sarl and is working to earn an 80% interest in a future mining licence within the Abujar North tenement.