- 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.