The Board of Mt Isa Metals Limited (MET) is pleased to advise that the company has finalised agreements that provide an option to acquire a 100% interest in eleven highly prospective gold exploration permits in Burkina Faso, West Africa. The agreements provide access to multiple gold targets for the Company that warrant immediate exploration investment.
The permits comprise a total area of approximately 2,400km2 and are located in multiple greenstone belts across Burkina Faso. The permits include approximately 1,500km2 of highly prospective greenstone belt rocks – host to a significant number of large gold deposits in the region.
A significant number of recent gold discoveries in West Africa have been facilitated by follow up of artisanal mining activity. MET is pleased to report that the optioned permits contain seventeen (17) formal artisanal mining sites focussed on exploitation of near‐surface gold occurrences.
The agreements provide for a three year option period and include, an up front payment of US$18,500 (single lump sum signing payment covering all agreements) followed by per permit payments ranging from US$7,500 to US$10,00 at the end of a 60 day due diligence period. The options can be maintained by staged annual cash payments ranging from US$10,000 to US$15,000 per permit at the end of the first year of the option period, up to US$35,000 to US$45,000 per permit at the end of the third year of the option period. If MET elects to participate to the end of the third year 100% ownership of the permits will be transferred to MET. MET has a right to withdraw from the agreements at any time. The vendors will be entitled to a 1.0% royalty over any gold produced from the properties.
Managing Director Peter Spiers commented, “We are very pleased to have concluded these option agreements in Burkina Faso. The agreements provide MET with access to an exciting portfolio of gold properties that we believe are highly prospective for future gold discoveries.” “This is a key first step for MET in establishing a portfolio of gold properties in the region. The gold properties will significantly enhance the value of the company’s exploration portfolio and will complement our core base metal properties in the Mt Isa region which continue to yield exciting results particularly with respect to copper exploration.”
