TSX-listed Roxgold has entered an agreement with Newcrest West Africa to acquire a portfolio of 11 exploration permits in Côte d’Ivoire.
These include the Séguéla gold project, for total upfront consideration of US$20 million.
Highlights of the transaction
- Highly prospective exploration permits covering 3,298 km2 in the attractive mining jurisdiction of Côte d’Ivoire with significant scope to build upon existing data and high-quality exploration work completed to date
- Near-term development potential at the flagship Séguéla project, which hosts the Antenna deposit and a number of satellite opportunities
- Séguéla’s Antenna deposit hosts a mineral resource containing an inferred resource of 5.8Mt at 2.3 g/t Au for 430 koz Au
- Acquisition cost of $20 million upon closing with a further payment of $10 million upon first gold production from the subject land package
- Addition to management team with the return of Paul Criddle to a full time executive position
John Dorward, President and CEO of Roxgold comments:
“Roxgold is excited to acquire Séguéla and the related permits from Newcrest.
“This acquisition represents a meaningful addition to our growth pipeline, providing a key second asset, immediate additional resource upside and a large prospective land package all in an accretive transaction for Roxgold shareholders.
“Rarely does such a large and carefully assembled land package become available from one of the world’s leading gold producers and Séguéla is expected to materially increase Roxgold’s overall resource inventory, particularly after we bring the deposit up to National Instrument 43-101 standards later this year.
“We also believe there is substantial near-term exploration upside at this deposit, and regionally, with the opportunity to significantly advance Séguéla in the near term.”
Paul Weedon, Vice President, Exploration adds:
“This acquisition provides Roxgold with a very attractive exploration portfolio that includes highly prospective early stage opportunities as well as an advanced stage exploration asset in Séguéla.
“Acquiring these assets from Newcrest allows us to build upon the high quality exploration work they have completed to date. We are eager to get to work on this portfolio to fully explore the potential upside we see at these assets.”