Oriole Resources PLC (AIM:ORR) confirmed that IAMGOLD Corp (TSX:IMG) has earned the right to a 51% stake in the Senala gold joint venture project in Senegal, however it said the route to formalising this holding is being reviewed.
IAMGOLD has spent more than US$4mln on the project, entitling it to a 51% interest under a 2018 option agreement, and has started its second option, to spend a further US$4mln by end-February 2024, that would lift its interest to 70%.
“We are very pleased that IAMGOLD has continued its investment at Senala,” said Oriole chief executive Tim Livesey. “The company's confidence in the prospectivity of the Faré area, underpinned by the excellent 2021 drilling results, matches our own belief that there is significant potential for the development of a standalone target.
"There are a few administrative steps required to complete the formalisation of IAMGOLD's 51% ownership but we support its decision to continue the exploration programme at pace whilst we finalise the structure.”
Oriole currently holds an 85% interest in Senala with joint venture partner Energy and Mining Corp SA holding the remaining 15%.
Talks are underway between the companies and IAMGOLD as to the most appropriate method for the change in interest to be carried out and the corporate structure that is to be established, Oriole said, adding that updates on this process will be provided in due course.