Mako Gold has completed the sale agreement with Nord Gold SE to sell the Niou Permit and Niou Sud Permit and has received full payment of US$700 000.
Under the terms of the Sale Agreement, Mako has received US$700 000 upfront cash consideration for the sale. In addition, Mako retains a 1% Net Smelter Royalty if Nordgold discovers a NI 43-101 compliant resource of at least 2Moz gold and advances the resource to production. Nordgold has the right to purchase the NSR at any time for US$4.5 million.
The divestment of the Niou Project in Burkina Faso allows Mako to focus its exploration efforts and capital on its flagship Napié Project and Korhogo Project in Côte d’Ivoire.
Mako’s MD Peter Ledwidge comments:
“Completion of the Sale Agreement with Nordgold bolsters our healthy balance sheet and will contribute to our aggressive exploration programs. We are pleased to have retained a 1% 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’lvoire 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.”