Oriole earn-in partner completes option term at Senala

Oriole Resources plc earn-in partner has completed its six-year term and is expected to hold 59% of the Senala gold project in Senegal.

DISCUSSIONS

Managem Group confirmed to the company that, since the 2018 option agreement, its subsidiary AGEM Senegal Exploration Suarl had spent US$5.8 million on the project.

AGEM’s beneficial ownership in the Senala exploration licence is now estimated to be 59%, which Oriole will review for its own confirmation.

Oriole, whose interest in Senala is via its 85% interest in Stratex-EMC Sarl, the holding vehicle for the Senala exploration licence, said that discussions had begun on the next steps for the project.

These include formation of a joint venture and associated technical committee; submission of a work plan and budget by Managem; and Stratex-EMC’s decision on whether to contribute to work costs or dilute its percentage ownership.

Stratex-EMC is also awaiting to hear from its application to renew the licence for a further three years.

Oriole added that if Stratex-EMC declined to contribute, Managem would need to spend an estimated further $31m to dilute Stratex-EMC below 10%, after which its interest would convert to a 2% net smelter returns royalty.

A mutual right of first refusal exists if either party looked to sell its interest in Senala.