Oriole Resources PLC (AIM:ORR), the AIM-quoted gold explorer focused on West Africa, has provided an update on its 24.94% interest in privately-owned Thani Stratex Resources Ltd (TSR), which holds a 93% interest in the Hodine licence in Egypt.
In Q1 of last year, TSR entered into an earn-in-agreement with Red Sea Resources Ltd (RSR), whereby RSR was given an initial 7% shareholding in Thani Dubai Mining Holdings Ltd (TDMHL).
TDMHL is the holding company of the Egyptian firm that holds the Hodine licence and RSR had the option to earn an overall 85% shareholding in the company by incurring US$2.2mln of exploration spending by March 2023.
RSR's exploration programmes have been focused on the Anbat project, one of two projects on the licence, and where TSR had previously reported an Inferred Mineral Resource Estimate in an announcement dated December 6, 2017.
Oriole confirmed on Wednesday that RSR has completed that investment in full.
However, RSR has said it will not be exercising the option due to the exploration programmes not resulting in a significant improvement in the mineral resource estimate. It did not, therefore, meet RSR’s investment criteria.
The operation of the licence, which is due to expire on December 31, 2022, will therefore be returned to TSR, and RSR’s 7% shareholding in TDMHL will be cancelled.