Oriole Resources PLC (AIM:ORR) has received notice from its partner IAMGOLD Corporation confirming that IAMGOLD has duly exercised the first of the options it holds on the Senala gold joint venture project in Senegal.
IAMGOLD has the option to spend up to US$8mln on Senala to earn a 70% interest.
It has now crossed the US$4mln threshold and is accordingly entitled to acquire 51% of Senala.
IAMGOLD has also confirmed that it intends to proceed with the second part of the agreement to go to 70%.
"IAMGOLD's notification that it has reached the U$4 million expenditure threshold and is moving to a 51% position at Senala is reflective of the excellent results we have seen coming out of the Year Four exploration programme at the project,” said Tim Livesey, chief executive of Oriole.
“We will be engaging with IAMGOLD to move through the process of formalising the new ownership arrangements and discussing the future exploration plans."