Total
0
Shares
Mako Gold (ASX:MKG) - Managing Director, Peter Ledwidge - The Market Herald
Managing Director, Peter Ledwidge
Source: HotCopper
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Mako Gold (MKG) has signed a definitive sales agreement with Nordgold SE to sell the Niou and Niou Sud permits in Burkina Faso for roughly A$1.1 million
  • If Nordgold happens to discover a two million ounce resource and advances to production, Mako Gold is entitled to a one per cent Net Smelter Royalty
  • This sale allows the company to focus on its flagship Napié Project in Côte d'Ivoire
  • Mako is also waiting for its permit applications to be approved which will increase its footprint by 296 square kilometres
  • The sale is subject to a few conditions including approval from the Burkina Faso Ministry of Mines
  • Company shares are up four per cent and are trading for 7.8 cents each

Mako Gold (MKG) has signed a definitive sales agreement with Nordgold SE to sell the Niou Permit and Niou Sud Permit for US$700,000 (roughly A$1.1 million).

In addition to the cash consideration, Mako will retain a one per cent Net Smelter Royalty (NSR) if Nordgold happens to discover an NI 43-101 compliant resource of at least two million ounces of gold and advances the resource to production.

Nordgold does, however, have the right to re-purchase the NSR at any time for US$4.5 million (roughly A$6.8 million).

Selling the Niou Project in Burkina Faso allows Mako Gold to focus on its flagship Napié Project in Côte d'Ivoire.

The company is also holding onto its permit applications in Côte d'Ivoire being approved. These applications cover an area of 296 square kilometres which significantly increases its national footprint.

"The signing of the Sale Agreement is a step towards reaping the financial benefits of the sale and our commitment to focus our exploration efforts on our flagship Napié Project in Cote d’Ivoire," Managing Director Peter Ledwidge said.

Mako Gold will use the money from the sale, as well as from its $3.25 million placement, to strengthen its cash balance and conduct drilling activities at the Napié Project to deliver a Maiden Resource.

The sale is subject to a few conditions including the approval by the Burkina Faso Ministry of Mines.

Company shares are up four per cent and are trading for 7.8 cents each at 3:54 pm AEST.

MKG by the numbers
More From The Market Herald
Great Boulder Resources (ASX:GBR) receives last RC results from Side Well

" Great Boulder Resources (ASX:GBR) begins AC drilling at Side Well

Great Boulder Resources (GBR) has begun a 60-hole aircore (AC) drilling program at the Side Well Gold Project in Western Australia.
Ausmon Resources (ASX:AOA) to be granted McAlpine licence

" Ausmon Resources (ASX:AOA) to be granted McAlpine licence

Ausmon Resources’ (AOA) subsidiary, New Base Metals, will soon be granted a six-year exploration licence for its McAlpine application in NSW.
Podium Minerals (ASX:POD) plans upcoming capital raise

" KGL Resources (ASX:KGL) raises additional funds through shortfall

KGL Resources (KGL) has raised an additional $3.64 million, after raising over $9.57 million in an entitlement offer in March.
GWR Group (ASX:GWR) - Non Executive Deputy Chairman, Tan Sri Dato Tien Seng Law - The Market Herald

" GWR Group (ASX:GWR) and Fe Limited (ASX:FEL) re-negotiate agreement

GWR Group (GWR) and Fe Limited (FEL) have re-negotiated and extended their mining rights agreement covering the JWD iron ore deposit.