Papillon Holdings has signed a binding Heads of Agreement with Mayflower Capital Investments to acquire certain contractual production and exploration rights held by Mayflower in two gold assets located in Kenya and Congo Brazzaville.
Papillon CEO Charles Tatnall says:
“Securing a near-term asset, which requires limited capex to bring to fruition, and which is partnered with significant upside from resource expansion and mine optimisation activities, is a remarkable find for our investors.
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“When coupled with an additional highly prospective and potentially equally valuable suite of discoveries in Congo Brazzaville, I believe we have a truly exceptional and largely de-risked opportunity for shareholders to gain exposure to the junior mining industry.
“As investors will know, now is perhaps the perfect time to be developing gold mines and projects. The price recently hit all times highs and despite a perceived correction in recent weeks, many commentators remain bullish about a long-term and sustainable price holding above US$2,000/oz.”
Proposed acquisition of:
- 100% interest in the Kilimapesa mine in the Republic of Kenya, a current producing mine with an existing 671,446 oz JORC resource and with further exploration potential; and
- 70% interest in the Kakamoeka project, which includes four exploration licences, covering over 3,000 km2 of the Mayombe Greenstone Belt located in Congo Brazzaville
- The Acquisitions are expected to provide the Company with near term production and considerable value upside potential from resource expansion and mine optimisation at Kilimapesa, in addition to uplift through the delivery of exploration and development milestones at Kakamoeka
- The Acquisitions are intended to be the first phase of a strategy to establish a strategic portfolio of African gold producing assets focussing on known and geologically proven projects
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