Oriole Resources plc has signed two non-binding heads of terms with BCM International Ltd for earn-ins at the company’s Mbe and Bibemi orogenic gold licences in Cameroon.
MBE
The transactions, for up to 50% interest in each licence with the Ghana-based mining and civil contractor, are expected to be executed before the end of the year.
Following signing of the heads of terms, Oriole received a non-refundable US$50,000 in advance payment for each licence to be offset against execution of the earn-in agreement.
The 312km2 Mbe licence lies in the eastern part of the district-scale Central Licence Package, containing a total nine licences covering 4,091km2 in which Oriole holds a 90% interest.
Subject to positive due diligence by 31 January 2024, BCM will pay Oriole $1m cash and commit to a $4 million exploration spend with further payments subject to the number of ounces reported under JORC.
On completion of the earn-in agreement, BCM will begin inaugural drilling during Q1 2024 at Mbe.
BIBEMI
Bibemi (92.2%), covering 177km2 in northeast Cameroon, comprises four main prospects of Bakassi Zone 1, Bakassi Zone 2, Lawa West and Lawa East.
On execution of the earn-in agreement, BCM will pay $500,000 cash to Oriole by the end of the year.
The company will also commit to a $4m spend, most of which will be for resource expansion drilling, with further payments subject to ounces reported under JORC.
Drilling is expected to resume at the project in Q1 2024, before which Oriole will progress technical studies to support its application for an exploitation licence in 2024.
For both licences BCM will provide drilling, under a separate contract, and Oriole will continue to manage the technical programmes and provide its geological and administrative teams to BCM, also under a separate contract.
“BCM brings decades of experience in the West African mining scene and has a highly competent management team and skilled workforce, with extensive experience in mine construction and operations support,” said Oriole chief executive Tim Livesey.
“I would like to thank our shareholders for their patience; negotiating earn-in agreements in a new jurisdiction can be time consuming and we have been conscious of the need to move quickly and yet still deliver an equitable investment structure.
“I am very pleased to note that BCM has approached the discussions with a willingness to align our interests and to work together as joint leaders in this new mining frontier.“
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