This announcement contains inside information
for the purposes of Article 7 of EU Regulation No. 596/2014
TSX: ASO
AIM: ASO
TORONTO, May
15, 2017 /CNW/ - Avesoro Resources Inc. ("Avesoro" or the
"Company"), the TSX and AIM listed West African gold producer, is
pleased to provide a short update on its corporate strategy.
Further to the Company's stated strategy to become a premier
mid-tier African gold producer, the Company announces that it is
currently considering a range of growth opportunities, including
the potential acquisition of the Youga Gold Mine and Balogo deposit
in Burkina Faso (the "Assets").
These Assets are currently owned by the Company's majority
shareholder Avesoro Holdings Limited ("Avesoro Holdings").
Independent technical reports are currently being prepared on
the Assets by CSA Global to provide a guide as to their valuation
in any potential future transaction.
Shareholders should note that there can be no certainty that a
transaction will be proposed by the Board, nor as to the terms or
the timescale of any such transaction. Any future transaction, if
proposed between the Company and its majority shareholder would be
a related party transaction and as such would therefore require
minority shareholder and regulatory approvals. The Company will, if
appropriate, make a further announcement in due course.
Publication of presentation
Further information on the
Assets can be found in a presentation titled "Q1 2017 Results
Presentation" which is now available to view on the Company's
website, www.avesoro.com.
About Avesoro Resources Inc.
The Company's assets
include the New Liberty Gold Mine in Liberia (the "New Liberty Gold Mine," "New
Liberty" or the "mine") which has an estimated proven and probable
mineral reserve of 8.5 Mt with 924,000 ounces of gold grading 3.4
g/t and an estimated measured and indicated mineral resource of
9,796 Kt with 1,143,000 ounces of gold grading 3.63 g/t and an
estimated inferred mineral resource of 5,730 Kt with 593,000 ounces
of gold grading 3.2 g/t. A Definitive Feasibility Study
("DFS") has been completed, the first gold pour has taken place and
commercial production has been declared. The foregoing
mineral reserve and mineral resource estimates and additional
information in connection therewith are set out in the Company's
technical report dated March 25, 2015
and entitled "New Liberty Gold Project, Bea Mountain Mining Licence
Southern Block, Liberia,
West Africa, Definitive Project
Plan.
The New Liberty Gold Mine is located within the Southern Block
of the 100% owned Bea Mountain mining licence. This licence
covers 478 km² and has a 25 year, renewable, mineral development
agreement. The Bea Mountain mining license also hosts
additional gold projects of Ndablama, Gondoja, Weaju and Leopard
Rock which are the focus of exploration programs during 2016.
Ndablama has an indicated mineral resource of 386,000 ounces of
gold grading 1.6 g/t and inferred mineral resource of 515,000
ounces of gold grading 1.7 g/t and Weaju has an inferred mineral
resource of 178,000 ounces of gold grading 2.1 g/t. The
Yambesei (473 km2), Archaen West (56 km2),
Mabong (36.6 km2) and Mafa West (15.6 km2)
licences will also be subject to preliminary reconnaissance
geological work. The foregoing mineral resource estimates and
additional information in connection therewith are set out in the
Company's technical report dated December 1,
2014 and entitled "Ndablama and Weaju Gold Projects, Bea
Mountain Mining Licence, Northern Block, Technical Report on
Mineral Resources" ("Ndablama and Weaju Technical Report
2014").
The Company also has a gold exploration permit in Cameroon.
Qualified Persons
The Company's Qualified Person is Mark
J. Pryor, who holds a BSc (Hons) in Geology & Mineralogy
from Aberdeen University, United Kingdom and is a Fellow of the
Geological Society of London, a
Fellow of the Society of Economic Geologists and a registered
Professional Natural Scientist (Pr.Sci.Nat) of the South African
Council for Natural Scientific Professions. Mark Pryor is an independent technical
consultant with over 25 years of extensive global experience in
exploration, mining and mine development and is a "Qualified
Person" as defined in National Instrument 43 -101 "Standards of
Disclosure for Mineral Projects" of the Canadian Securities
Administrators and has reviewed and approves this press
release.
Forward Looking Statements
Certain information contained in this Announcement constitutes
forward looking information. This information may relate to future
events or the Company's future performance. All information other
than information of historical fact is forward looking information.
The use of any of the words "anticipate", "plan", "continue",
"estimate", "expect", "may", "will", "project", "should",
"believe", "predict" and "potential" and similar expressions are
intended to identify forward looking information. Specific
statements that constitute forward looking information include
statements regarding the timing and completion of legal
documentation required to amend the loan facilities and to document
the guarantees. This forward looking information involves known and
unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those
anticipated in such forward looking information. No assurance can
be given that this information will prove to be correct and such
forward looking information included in this Announcement should
not be unduly relied upon. This information speaks only as of the
date of this Announcement.
Actual results could differ materially from those anticipated in
the forward looking information contained in this news release as a
result of the risk factors, including: the risk that the waiver and
standstill agreement will terminate; the risk that legal
documentation may not be completed as anticipated; risks normally
incidental to exploration and development of mineral properties;
the inability to obtain required waivers and amendments from the
Company's creditors in respect of its debt repayment obligations
and consequential risks of default thereon; risks related to
operating in West Africa; health
risks associated with the mining workforce in West Africa; risks related to the Company's
title to its mineral properties; adverse changes in commodity
prices; risks related to current global financial conditions; the
inability of the Company to obtain, maintain, renew and/or extend
required licences, permits, authorizations and/or approvals from
the appropriate regulatory authorities and other risks relating to
the legal and regulatory frameworks in Liberia, including adverse changes in
applicable laws; competitive conditions in the mineral exploration
and mining industry; risks related to obtaining insurance or
adequate levels of insurance for the Company's operations; risks
related to environmental regulations; uncertainties in the
interpretation of results from drilling; risks related to the legal
systems in Liberia; risks related
to the tax residency of the Company; changes in exchange and
interest rates; risks related to the activities of artisanal
miners; actions of third parties that the Company is reliant upon;
lack of availability at a reasonable cost or at all, of plants,
equipment or labour, including required equipment, explosives and
other necessary material not being delivered in the expected time
frame, or at all; the inability to attract and retain key
management and personnel; political risks; and future unforeseen
liabilities and other factors.
The forward looking information included in this Announcement is
expressly qualified by this cautionary statement and is made as of
the date of this Announcement. The Company does not undertake any
obligation to publicly update or revise any forward looking
information except as required by applicable securities laws.
SOURCE Avesoro Resources Inc.