It is disposing the company’s subsidiary Société Miniére de Kerboulé SARL (or SMK) which holds the wholly-owned Arae and Gassel-Manere exploration licences that together comprise the Kerboulé Gold Project.
The company will receive a nominal fee of US$1 for the transaction, while the acquirer will assume all ongoing operating costs and SMK's liabilities. At the same time, the company is required to pay the acquirer the equivalent of US$17,700.
In a statement, Cradle Arc noted that since producing resource estimates for the project, back in 2015, access to the project has been “hampered by the deteriorating security situation” and it noted that armed extremist groups have been operating in the area.
“Accordingly, defining a path for further exploration through to potential development activities on both Arae and Gassel-Manere is not possible at this time,” the company said in a statement.
“The lack of near term production potential in comparison to what the company considers much lower risk, higher return investment at the company's Mowana mine has led to the disposal.”