R/€ = 15.62 Change: 0.02
R/$ = 13.93 Change: 0.01
Au 1424.08 $/oz Change: -15.08
Pt 845.11 $/oz Change: -10.33
 
 
R/€ = 15.62 Change: 0.02
R/$ = 13.93 Change: 0.01
Au 1424.08 $/oz Change: -15.08
Pt 845.11 $/oz Change: -10.33
 
 
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Acacia concludes termination of earn-in agreement over Burkina Faso project

15th May 2019 BY: Creamer Media Reporter

London-listed Acacia Mining has signed the definitive documentation required to terminate its earlier earn-in agreement with TSX-V- and FSE-listed Sarama Resources over the South Houndé project, in Burkina Faso.

Acacia announced in November last year that it would divest of the project, following a review of its exploration portfolio. The project was deemed to be noncore.

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Sarama will regain 100% ownership of the project.

As part of the termination, it will pay Acacia $2-million in staged payments. Acacia is also entitled to a $2-million payment once commercial production at South Houndé starts and will retain a 1% to 2% net smelter return royalty, based on a sliding rate basis on the gold price received and capped gold production of one-million ounces.

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Acacia will also be granted five-million warrants for common shares in Sarama, exercisable for five years.

Acacia on Wednesday said it remains committed to exploration in Burkina Faso, with various earn-in agreements that provide it with exposure to about 2 000 km² of the prospective Houndé Belt, still active. 

EDITED BY: Chanel de Bruyn Creamer Media Senior Deputy Editor Online
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