Mako Gold has signed the definitive sale agreement with Nord Gold SE to sell the Niou Permit and Niou Sud Permit, subject to certain conditions precedent.
Under the terms of the Proposed Sale Agreement, Mako Gold will receive US$700,000 upfront cash consideration for the sale.
In addition, Mako will retain a 1% Net Smelter Royalty if Nordgold discovers an NI 43-101 compliant resource of at least 2 Moz gold and advances the resource to production.
Nordgold has the right to repurchase the NSR at any time for US$4.5million.
Divesting the Niou Project in Burkina Faso allows Mako Gold to focus its exploration efforts and capital on its flagship Napié Project in Côte d’Ivoire.
The company is also optimistic that its pending permit applications, totalling 296 km2, in Côte d’Ivoire will be granted shortly, thereby increasing its footprint in-country.
Mako’s MD Peter Ledwidge comments:
“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.
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“The proceeds from the sale, in addition to the proceeds of our recent placement will significantly strengthen our cash balance and will finance drilling activities so that Mako can deliver a Maiden Resource, while also advancing other prospects on the Napié Project.
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“We look forward to resuming our drilling activities at Napié shortly”.