Oriole Resources plc has signed a non-binding heads of agreement to increase its interests to 90% in the Bibemi and Mbe gold licences in Cameroon.
RESTRUCTURE
The agreements will see the company buy its local partners’ interests in each licence for US$39,000 and $100,000 respectively.
The local partners will hold a net smelter return royalty and receive 5% of any further payments from earn-in operator BCM International Ltd in respect of resource milestones.
BCM has an option to fund up to $8 million in exploration for up to a 50% interest in each licence. The operator currently has a 10% interest.
Oriole also looks to restructure its remaining three licences within the Central Licence Package, with Mana, Dogon and Sanga also known as the Western CLP, pending transfer to an Oriole subsidiary.
Once renewed, the Wapouzé licence will be transferred to its own investment vehicle with an overall 15% interest in this licence in favour of the local partners.
BEIG3, vendors of Mbe and Bibemi, will have a 10% interest in the Gamboukou lithium licence as well as the Maboum licence which is still under application.
Chief executive Martin Rosser said the deal simplified the ownership structure of the key licences.
BIBEMI
Earlier this week, Oriole reached the halfway mark of phase 5 diamond drilling at the Bibemi orogenic gold project.
BCM has to date drilled 31 holes for a total 3,741.70 metres of a 62-hole for 7,060m programme at the Bakassi Zone 1 prospect.
Results from selective sampling of the second set of 10 holes have several mineralised intersections, including 1.20m at 25.54g/t gold; 2m at 2.76g/t gold; and 1.80m at 3.26g/t gold.
Oriole said that several intersections were within 50m of surface.
Drilling has started at a second target of BZ1-NE for 18 planned drill holes before the campaign finishes in Q4 2024.
Mr Rosser added: “The results continue to support the case for resource expansion within the BZ1-MRE zone and we look forward to additional results from that target as well at the BZ1-NE zone.”
Bibemi’s four prospects comprise Bakassi Zone 1, Bakassi Zone 2, Lawa West and Lawa East.