Arrow Minerals Ltd (ASX:AMD) has completed the acquisition of Burkina Faso exploration company, Boromo Gold Limited, via the issue of 10 Arrow shares for each Boromo share, valuing Boromo at $3.5 million.
Following completion, Arrow owns a 100% interest in six high-quality gold exploration projects in Burkina Faso, totalling 2,013 square kilometres, with drill-ready targets at Divole East and Divole West.
Boromo gold exploration projects – location map
A reverse circulation (RC) drilling program has been completed at Divole East, with 24 holes drilled for 2,385 metres.
Previous drilling by Boromo at Divole East intersected 10 metres at 4.3 g/t gold from 48 metres.
Results from the current drill program are expected to be announced by mid-September 2019.
In conjunction with the acquisition, Arrow has completed a $2.1 million equity placement at an issue price of 1 cent per share plus a 1 for 2 attaching option.
Arrow has also entered into a strategic alliance with Capital Drilling Limited (LON:CAPD) which subscribed for $0.8 million of shares in the placement and is providing drilling services to Arrow in Burkina Faso over an initial two-year period.
CEO and board with significant West African experience
Arrow chief executive officer Howard Golden said: “Since my first foray into West Africa thirty years ago I have not had the privilege to explore a portfolio of exploration projects as prospective as those now on Arrow’s books.
“Arrow now has the funding and expertise to aggressively work to discover gold deposits in Burkina Faso, as well as breathe new life into the existing Western Australia assets.
“I can’t say enough about the experience, expertise and enthusiasm of our Australian and Burkinabe technical team.
“I also wish to congratulate the management of Boromo Gold and Arrow for the professional and mutually beneficial way the integration of the two companies has progressed to benefit both companies’ shareholders, their employees, and the communities in which we are working.
“The Arrow team is now well equipped to focus on an exciting future that will add value for all involved, and I’m proud to be a part of it.
“I want to express my appreciation to all who helped to make this new enterprise a reality and to those who are joining us for the journey to come. We will be communicating soon with detailed results and plans.”