Oklo Resources

ASX-listed junior Oklo Resources has entered into a binding term sheet with ASX-listed Marvel Gold (formerly Graphex Mining) to divest an 80% interest in its non-core projects located in south Mali through the formation of an exploration joint venture company.

Read more: Graphex drill tests newly acquired Mali gold projects

The transaction allows Oklo to focus on advancing its west Mali gold projects, including the flagship Dandoko project, while maintaining an exposure to any future exploration success in the south Mali project areas.

Oklo’s south Mali projects include the Yanfolila, Yanfolila Est, Kolondieba, Kolondieba Nord, Sirakourou, Solabougouda and Solabougouda Sud (under application) licences. Oklo has been evaluating these project areas since 2013, undertaking greenfield exploration and progressing the Solona Main and Solona North West gold prospects within the Yanfolila project.

Following the recent discovery of significant high-grade mineralisation at Oklo’s Seko prospect within its Dandoko gold project in west Mali, this region has increasingly become the focus of the company’s future plans.

Oklo is therefore pleased to have secured this compelling transaction to progress its south Mali projects with a dedicated Malian explorer managed by a well-credentialed team with strong cash backing

Transaction terms

Oklo has agreed to divest an 80% interest in the south Mali projects to Marvel on the following terms:

  • Marvel will make a non-refundable US$50 000 payment to Oklo immediately.
  • Marvel will make a non-refundable $150 000 payment to Oklo immediately upon Oklo incorporating an exploration joint venture structure that provides Marvel with an 80% beneficial interest in the licences.
  • Oklo will retain a 20% free-carried interest in the exploration joint venture (JV) company until a decision to mine is taken on a licence. Oklo will then have the option to contribute or dilute with regards to that licence through a newly formed operations JV company and will retain its free-carried interest in the exploration JV company.
  • Marvel will issue 4 million Marvel shares to Oklo upon each confirmation of the successful renewal of the Yanfolila, Yanfolila Est, Kolondieba, Kolondieba Nord and Sirakourou licences (to a total of 20 million Marvel shares).

Marvel will issue 10 million Marvel shares to Oklo within five business days of Marvel announcing:

  • A JORC 2012 mineral resource at the Yanfolila, Yanfolila Est, Kolondieba or Kolondieba Nord licences of any resource category of not less than 500 000 oz of gold or gold equivalent at a minimum grade of 1 g/t; or
  • a JORC 2012 mineral resource at the Sirakourou, Solabougouda and Solabougouda Sud licences of any resource category of not less than 350 000 oz of gold or gold equivalent at a minimum grade of 1 g/t.

Marvel will issue 10 million Marvel shares to Oklo within five business days of Marvel announcing:

  • A JORC 2012 mineral resource at the Yanfolila, Yanfolila Est, Kolondieba or Kolondieba Nord licences of any resource category of not less than 1 Moz of gold or gold equivalent at a minimum grade of 1 g/t; or
  • A JORC 2012 mineral resource at the Sirakourou, Solabougouda and Solabougouda Sud licences of any resource category of not less than 700 000 oz of gold or gold equivalent estimated at a minimum grade of 1 g/t.

“We are delighted to have entered into this transaction with Marvel following its recent entry into Mali. The agreement allows Marvel to unlock the potential of our south Mali projects and will free up Oklo to focus on advancing its flagship Dandoko project in west Mali,” says Oklo Resources MD Simon Taylor.

“It also provides our shareholders with ongoing exposure to any future discoveries by Marvel through a 20% free-carried holding to a decision to mine as well as a shareholding in Marvel.

“Oklo’s south Mali projects are complementary to Marvel’s recently acquired gold projects, with the Sirakourou licence being located adjacent to and potentially along strike of a historical gold resource within Marvel’s Tabakorole project. We are therefore confident that Oklo will benefit significantly from any future exploration success in this region,” Taylor concludes.