Oriole Resources plc said its joint venture partner intended to exercise its second option to earn a 70% interest in the Senala gold project in Senegal.
FIRST OPTION
Canadian company IAMGOLD Corporation had the option to spend up to US$8 million to earn a 70% interest.
IAMGOLD has spent more than $4m within the first four years of the agreement to acquire a 51% in Senala.
SECOND OPTION
Oriole today said that IAMGOLD intended to proceed with the second option to spend an additional $4m within a further two-year period to earn a further 19% interest in Senala.
This will take for IAMGOLD’s total interest in the project to 70%.
FUTURE EXPLORATION
Oriole chief executive Tim Livesey said that IAMGOLD’s notification reflected the “excellent results” from the Year 4 exploration at Senala.
“We will be engaging with IAMGOLD to move through the process of formalising the new ownership arrangements and discussing the future exploration plans.”