Oriole Resources plc aims to secure US$1 million investment for exploration on its five gold licences in the eastern Central Licence Package, central Cameroon.
TERMS
The company said it was transferring its 90% project interest into a sub-holding company, NewCo, to enable the investment and advance exploration while minimising equity dilution for shareholders.
Oriole has signed a letter of engagement with a Canadian investment banking firm to secure the financing in return for a 10% non-carried interest in NewCo.
The investment will be earmarked exclusively for gold exploration while the company will pursue other funding for lithium exploration within the CLP.
Closing of the financing is expected during Q2 2023.
Oriole anticipates its 90% interest in the project to increase to 100% after a resource definition.
CLP
The licences in the eastern CLP include Tenekou, Niambaram, Pokor, Ndom and Mbe.
Work to date has identified multiple 2-3km long gold-in-soil anomalies and a 12.5km-long zone of anomalism at Mbe.
Follow-up rock-chip sampling at Mbe returned up to 134.10 grammes per tonne gold from a cross-cutting structural corridor that extends over a strike length of 3km and a width of at least 70 metres.