- Mako Gold (MKG) completes the sale of the Niou Project in Burkina Faso to Nordgold for US$700,000 (A$954,845)
- Additionally, the company will retain a one per cent net smelter royalty if a two-million-ounce resource is discovered and advanced to production
- The sale of the Niou Project allows Mako to focus its exploration efforts and capital on its Napié and Korhogo projects in Côte d’Ivoire
- Mako ends the day 5.68 per cent in the red with shares trading at 8.3 cents
Mako Gold (MKG) has completed the sale of the Niou Project in Burkina Faso to Nordgold for US$700,000 (A$954,845).
In addition, Mako will retain a one per cent net smelter royalty (NSR) if Nordgold discovers a resource of at least two million ounces of gold and advances the resource to production.
Nordgold has the right to purchase the NSR at any time for US$4.5 million (A$6.13 million).
The sale of the Niou Project allows Mako to focus its exploration efforts and capital on its Napié and Korhogo projects in Côte d’Ivoire.
Mako first announced its intention to sell the Niou Project in June 2020 when it signed a definitive sales agreement with Nordgold.
Before it could proceed, the sale was subject to a number of conditions including receiving approval from the Burkina Faso Ministry of Mines.
The Niou Project lies within the Goren Greenstone Belt in the central part of Burkina Faso and is situated 50 kilometres north of the capital Ouagadougou.
Managing Director Peter Ledwidge is pleased with the outcome of the agreement.
“Completion of the sale agreement with Nordgold bolsters our healthy balance sheet and will contribute to our aggressive exploration programs,” Mr Ledwidge commented.
“We are pleased to have retained a one per cent NSR on the Niou Project leaving Mako some upside to our gold discovery.
“Proceeds from the sale, in addition to the proceeds of our recent placement, will be applied to our highly prospective projects in Côte d’Ivoire as we move towards and beyond our upcoming maiden resource estimate at the Napié Project and as we shortly embark on our maiden drilling program at Korhogo.”
Mako has ended the day 5.68 per cent in the red with shares trading at 8.3 cents in a $28.29 million market cap.