Mako Gold Ltd (ASX:MKG) has completed the transaction with Nord Gold (FRA:RTSD) SE to sell the Niou Permit and Niou Sud Permit in northeast Burkina Faso and has received the full payment of US$700,000 (A$945,000) in cash.
Besides the cash consideration, Mako also retains a 1% net smelter royalty (NSR) if Nordgold discovers a NI 43-101 compliant resource of at least 2 million ounces gold and advances the resource to production.
Nordgold has the right to purchase the NSR at any time for US$4.5 million (A$6.1 million).
Further upside to gold discovery
Mako managing director Peter Ledwidge said: “Completion of the sale agreement with Nordgold bolsters our healthy balance sheet and will contribute to our aggressive exploration programs.
“We are pleased to have retained a 1% NSR on the Niou Project leaving Mako some upside to our gold discovery.
Focus on flagship projects
Following the funds received from the sale of the project in conjunction with the proceeds from its recent capital raising initiative, Mako is well funded with A$14.9 million in cash.
This allows Mako to focus aggressively on the exploration of its flagship Napié Project and Korhogo Project, both in Côte d’Ivoire.
Ledwidge added: “Proceeds from the sale, in addition to the proceeds of our recent placement, will be applied to our highly prospective projects in Côte d'Ivoire as we move towards and beyond our upcoming maiden resource estimate at the Napié Project, and as we shortly embark on our maiden drilling program at Korhogo.”