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Oriole partner to exercise option for 70% in Senala

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.

Process: Oriole and IAMGOLD will discuss formalising the new ownership arrangements (Pixabay – generic)

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.”

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