Oriole Resources plc said it would write down £1.45 million for the carrying value of its Thani Stratex interest after its investee company relinquished the Hodine gold exploration licence in Egypt.
BUSINESS STRUCTURE
The licence, containing the Anbat and Hutite projects, lies in the southeast of the country.
Oriole holds a 24.94% interest in privately-owned Thani Stratex Resources Ltd (TSR) which had a 93% interest in Hodine.
In March 2021, TSR signed a binding heads of terms agreement with private investment company Red Sea Resources Ltd (RSR) to earn up to an 85% interest in Hodine for expenditure commitments of $2.2m.
MINERAL RESOURCE ESTIMATE
In October 2022, Oriole reported that RSR had spent $2.2m on exploration at Hodine, specifically Anbat, but would not be exercising its option to acquire an 85% interest in the licence.
RSR’s decision followed no significant improvement on the existing 2017 inferred mineral resource estimate (MRE) at Anbat of 209,000 oz grading 1.11 grammes per tonne gold, said Oriole.
The Egyptian mining authority also stated that the 2017 MRE failed to satisfy the definition of a commercial discovery under the country’s mining code.
RELINQUISHMENT
“Accordingly, RSR forfeited it’s right to an 85% interest in the licence and TSR resumed full control,” added Oriole.
“With the licence due to expire on 31 December 2022, and no possibility of extending its tenure, TSR has advised the company that it has now formally relinquished the licence.
“Accordingly, an amount of £1.45 million, relating to the carrying value of TSR, will be written down in the company’s accounts at year end.”