Mako Gold Ltd (ASX:MKG) has completed a sale and purchase agreement with Perseus Mining Ltd (ASX:PRU, TSX:PRU, OTC:PMNXF), acquiring a further 39% of the Napié Gold Project in Côte d’Ivoire to bring its ownership stake in the project to 90%.
An established West African gold producer in its own right, Perseus Mining will receive 13.8 million Mako Gold shares at an issue price of $0.101 each – subject to a 12-month voluntary escrow. The equivalent 2.94% holding, well see Preseus emerge as a strategic shareholder in Mako Gold.
MKG sees the execution of the agreement, especially Perseus’ investment in MKG shares, as an endorsement of the 100% owned Korhogo Project nearby, and the company’s exploration and management team.
The acquisition agreement also contains two milestone payments;
- $2.4 million, payable in cash or scrip (MKG’s discretion) following the delineation of a 1-million-ounce measured and indicated mineral resource at Napié, and;
- Further $2.4 million payment under similar conditions (PRU’s discretion) upon first sale of gold doré or ore extracted from Napié.
Napié advances toward first milestone
Prior to the execution of this agreement, Mako was earning a 75% interest in Napié under a farm-in and joint venture (JV) agreement with Occidental, a Perseus Mining subsidiary.
Since its IPO in 2018, Mako has made material progress on the Napié Project, completing its first stage earn-in equity of 51% early in July 2019 (involving exploration spend of US$1.5 million over a 3-year period).
More recently, the company outlined an 868,000-ounce gold inferred mineral resource estimate (MRE) at the Tchaga and Gogbala prospects, with several more high-grade discoveries offering more exploration upside.
With the resolution of this transaction, Mako Gold will hold 90% ownership in Napié, with the remaining 10% held by African American Investment Fund SA (AAIF).