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Sarama Resources and Acacia Mining part ways

TSX-listed Sarama Resources has executed a definitive agreement with Acacia Mining to terminate the 2014 earn-in agreement between the two companies regarding the South Houndé Project in Burkina Faso.

The Agreement provides for Sarama to resume operatorship and regain a 100% interest in the Project, which is contiguous to Sarama’s neighbouring 100%-owned ThreeBee Project.

“We are very pleased to have executed the agreement to finalise Acacia’s exit from the South Houndé Project and look forward to resuming full ownership and management,” says Sarama’s President and CEO, Andrew Dinning.

“Acacia’s exit is fundamental to consolidating our regional position and allows us to finally start advancing our key assets up the value curve and towards mine development.

“Sarama looks forward to re-commencing management of the project and will initially focus on resource development work which includes drilling attractive near-field and extensional oxide and free-milling targets, whilst framing-up potential development options for the project.”

The South Houndé Project hosts an inferred mineral resource of 2.1 Moz Au, including an oxide and transition component of 0.6 Moz Au.

The ThreeBee Project hosts the Bondi Deposit which has a historical mineral resource of 0.3 Moz Au measured and indicated; and 0.1Moz Au inferred.

Together, these projects form the foundation for possible development in the region which is underpinned by the current inventory of free-milling material, suitable for processing by heap leaching or a conventional gold plant.

Sarama will benefit from approximately US$13M of historical exploration expenditure by Acacia on the South Houndé Project and significant exploration potential remains on both the South Houndé and ThreeBee Projects with the initial focus for Sarama being attractive oxide targets.