The 250 km2 Rakounga Gold property is contiguous to the Bouboulou gold concession belonging to Nexus Gold.
The property borders Bouboulou on the west and south sides and hosts the Bouboulou 1 gold showing, which is the southern extension of the Bouboulou 2 trend.
Bouboulou 1 is an active orpaillage with shaft workings that extend down approximately 80 m.
Nexus Gold will have an option to acquire a 90% interest in the property, in consideration for cash payments of US$400 000 and the issuance of 575 000 common shares of Nexus Gold, over a period of three years, broken down as follows:
- $15 000 and 25 000 shares of Nexus Gold upon signing of a definitive agreement
- $15 000 and 50 000 shares of Nexus Gold not later than the first anniversary of the definitive agreement
- $120 000 and 200 000 shares not later than the second anniversary of the definitive agreement
- $250 000 and 300 000 shares on or before the third anniversary of the definitive agreement
Following the acquisition of a 90% interest in the property, Nexus Gold will have the option to acquire the remaining 10% interest in the property through a cash payment of $1 000 000 with a 1% net smelter return royalty remaining with the optionor.
“We are very pleased to add Rakounga to our portfolio, which effectively represents a 700% increase in size to the Bouboulou concession area,” says Nexus Gold president and CEO, Peter Berdusco.
“With just under 300 km2 of ground, we can now follow both the already established Bouboulou 2 and Pelatanga-Rawema mineralized trends for several kilometres to the southwest.
“There is significant artisanal activity along these trends and we’re excited to continue our exploration efforts there in the coming months,” continues Berdusco.
All securities issued in connection with the property option will be subject to a four-month-and-one-day statutory hold period.
The property option remains subject to a number of conditions, including negotiation of definitive agreements, approval of the TSX Venture Exchange, and such other conditions as are customary in transactions of this nature.
Nexus Gold exploration update
A total of 2,596 m of diamond drilling was completed at the Bouboulou concession in mid-July.
Phase one drilling tested the Koala, Rawema, and Bouboulou 2 zones, to depths of approximately 150 to 175 m.
Assays are currently pending and results will be released once received, reviewed and verified.
In addition, Nexus Gold is also awaiting results of approximately 2 000 m of diamond drilling from the Niangouela concession, completed in mid-May.
After lab delays, Nexus Gold also anticipates receiving these results shortly and will release them once received, reviewed and verified.
Nexus Gold plans on resuming exploration activity at its Burkina Faso projects in the fall.
Feature image credit: Nexus Gold