TIDMORR
RNS Number : 2178A
Oriole Resources PLC
19 January 2024
Oriole Resources PLC
('Oriole Resources' or 'Oriole' or 'the Company')
Execution of Mbe Conditional Earn-In Agreement
Oriole Resources (AIM: ORR), the AIM-quoted gold exploration
company focussed on West Africa, is delighted to report that,
further to its announcements on 20 November 2023, it has signed a
definitive earn-in agreement ('Earn-In Agreement') with BCM
International Limited ('BCM') in relation to the Company's Mbe gold
project ('Mbe') in Cameroon.
This is Oriole's second earn-in agreement with BCM, having
signed a similar deal earlier this month in relation to the
Company's Bibemi gold licence in Cameroon (announcement dated 5
January 2024).
Highlights
-- Execution of the Mbe Earn-In Agreement whereby BCM will earn
up to a 50% interest in Mbe in return for meeting certain
commitments which, in addition to a US$1 million Signature Payment
(against which the Company has already received a US$50k advanced
payment), include U$4 million in exploration expenditure and future
resource-linked success-based payments;
-- The Mbe Earn-In agreement, and payment of the Signature
Payment, is conditional on the successful conclusion of BCM's
due-diligence review on or before 31 January 2024;
-- Sampling results from that due-diligence review are anticipated later this month.
Oriole Resources CEO, Tim Livesey , said: " With the signing of
this second earn in agreement with BCM, we look forward to
advancing the exploration at the Mbe licence in parallel with our
resource expansion work at Bibemi.
"Since Oriole was granted its package of eight contiguous
licences in central Cameroon back in February 2021, we have
advanced with great success, identifying a large number of
significant gold anomalies in what we suggest could be a corridor
of mineralisation some 75 km-long. Prior to our licence
application, this area was open ground and indicates the huge
opportunity Cameroon has for new discoveries.
"At Mbe, the originally identified 12 km-long gold-in-soils
anomaly has delivered several zones of significant surface gold
mineralisation in vein sets grading up to 134 g/t Au. We expect the
current period of due diligence by BCM will show further support
for this area when results are received from their sampling
programme later this month.
"With two of our 11 licences in Cameroon now under earn-in
agreements, we still retain a significant position in this emerging
jurisdiction for gold exploration, and look forward to sharing news
of our progress throughout 2024 as we continue to explore in this
new gold district ."
Further Details
On 20 November 2023, the Company signed a Heads of Terms with
BCM International Limited , a well-respected mining and civil
contractor, related to an earn-in by BCM on the Company's Mbe
(90%-owned) gold project.
Mbe (312km(2) ) is an early-stage project located within the
broader 2,266km(2) Eastern CLP package of contiguous gold-focussed
licences in central Cameroon ('Eastern CLP' or the 'Licence
Package'). During 2023, the Company identified a 3km-long
geological zone containing areas of high-grade gold mineralisation
with results of up to 134.10 grammes per tonne ("g/t") gold ("Au")
from surface samples and artisanal workings (announcements dated 30
January 2023, 27 February 2023 and 21 June 2023).
The Company today reports that a definitive Earn-In Agreement
has been executed for Mbe, securing up to US$4 million in
exploration expenditure, in addition to a US$1 million Signature
Payment and JORC resource linked success-based payments
(announcement 20 November 2023). This is Oriole's second earn-in
agreement with BCM, having signed a similar deal earlier this month
in relation to the Company's Bibemi gold licence in Cameroon
(announcement dated January 2024).
Completion of the Mbe Earn-In Agreement, and receipt of the
Signature Payment, is conditional on the successful outcome of a
due diligence review by BCM, ending no later than 31 January 2024.
To date, BCM has completed (at its own cost) a three-week long site
visit at Mbe and has collected 639 rock samples, each weighing 2-5
kilograms, over the main 3km-long zone (announcement dated 2
January 2024). Analysis of the samples (together with 68 QAQC
samples, for a total 707 samples) is being undertaken by Intertek
Ghana, predominantly for Fire Assay analysis but also for some
preliminary metallurgical testwork (bottle-roll leach test) to
ascertain the recoverability of the gold. Results are expected
later this month.
Following a successful completion of the due-diligence review,
the balance of the Signature Payment will be made in two tranches,
with the first tranche of US$500,000 to be made on or before 31
January 2024 and the balance of US$450,000 to be paid on or before
29 February 2024.
Competent Persons Statement
The information in this release that relates to Exploration
Results has been compiled by Claire Bay (Executive Director,
Exploration and Business Development). Claire Bay (MGeol, CGeol) is
a Competent Person as defined in the JORC code and takes
responsibility for the release of this information. Claire has
reviewed the information in this announcement and confirms that she
is not aware of any new information or data that materially affects
the information reproduced here, and that the material assumptions
and technical parameters that underpin the Bibemi Mineral Resource
Estimate continue to apply.
** ENDS **
The information contained within this announcement is deemed to
constitute inside information as stipulated under the retained EU
law version of the Market Abuse Regulation (EU) No. 596/2014 (the
"UK MAR") which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. The information is disclosed in accordance
with the Company's obligations under Article 17 of the UK MAR. Upon
the publication of this announcement, this inside information is
now considered to be in the public domain.
For further information please visit www.orioleresources.com ,
@OrioleResources on Twitter, or contact:
Oriole Resources Plc Tel: +44 (0)23 8065 1649
Tim Livesey / Bob Smeeton / Claire
Bay
BlytheRay (IR/PR Contact) Tel: +44 (0)20 7138 3204
Tim Blythe / Megan Ray
Grant Thornton UK LLP Tel: +44 (0)20 7383 5100
Samantha Harrison / Ciara Donnelly
SP Angel Corporate Finance LLP Tel: +44 (0)20 3470 0470
Ewan Leggat / Harry Davies-Ball
Notes to Editors:
Oriole Resources PLC is an AIM-listed gold exploration company,
operating in West Africa. It is focussed on early-stage exploration
in Cameroon, where the Company has reported a Resource of 375,000
oz Au at 2.30g/t in the JORC Inferred category at its 82.2%-owned
Bibemi project and has identified multi-kilometre gold and lithium
anomalism within the district-scale Central Licence Package
project. BCM International is currently earning up to a 50%
interest in the Bibemi and Mbe projects in return for a combined
investment of up to US$8m in exploration expenditure, as well as
JORC resource-based success payments.
At the more advanced Senala gold project in Senegal, AGEM
Senegal Exploration Suarl ('AGEM'), a wholly-owned subsidiary of
Managem Group, has earned an initial 51% beneficial interest in the
Senala Exploration Licence by spending US$4 million and has the
option to spend up to a further US$4 million by 17 February 2024 to
earn an additional 19% interest in the licence. The Company also
has several interests and royalties in companies operating in East
Africa and Turkey that could deliver future cash flow.
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