leadf
logo-loader
viewArrow Minerals Ltd

Arrow Minerals begins Roxgold earn-in agreement for Hounde South Gold Project

Under the agreement, Roxgold can acquire an initial 51% interest in the project with the option to increase its interest to 70% through exploration expenditure.

Arrow Minerals Ltd - Arrow Minerals commences Roxgold earn-in agreement for Hounde South Project
The project is adjacent to Roxgold’s Boussoura permit in southwest Burkina Faso

Arrow Minerals Ltd (ASX:AMD) has started its partnership with Roxgold Inc (TSE:ROXG) (OTCMKTS:ROGFF) for the Hounde South Gold Project in Burkina Faso after the Canadian-based company satisfied all conditions precedent to a definitive earn-in agreement.

Roxgold can earn a 70% interest in the project after exploration expenditure of up to US$1 million (around A$1.4 million) in two stages over four years.

The project consists of two exploration licences, Fofora and Konkoira, adjacent to Roxgold’s Boussoura permit in southwest Burkina Faso.

“Prospectivity of permits confirmed”

Arrow managing director Howard Golden said: “Arrow is very pleased to formally begin this exciting joint project with Roxgold in Burkina Faso.

“We have been enthusiastic about this section of the Hounde belt since we targeted the area in 2016.”

Golden said the prospectivity of the permits was confirmed by Roxgold’s recent announcement in July of broad high-grade gold intersections at its adjacent Boussoura project.

He said: “Arow can now continue to focus its resources on its more advanced projects including the recent Dassa gold discovery, while working with Roxgold, a well-respected and successful miner and explorer with great experience in Burkina Faso.

“Roxgold owns the Yaramoko gold mine in the same geological belt as Hounde, as well as active exploration projects in Burkina Faso.”

Arrow and Roxgold tenement locations

Agreement details

Under the agreement, Roxgold can acquire an initial 51% interest in the project with the option to increase its interest to 70% through exploration expenditure as follows:

  • First earn-in stage – Roxgold earns 51% interest by spending US$600,000 (around A$0.85 million) over two years from the effective date (7 August 2020);
  • Second earn-in stage – Roxgold may increase its interest to 70% by spending US$400,000 (around A$0.6 million) over the following two years; and
  • Roxgold and Arrow will form a joint venture where both companies contribute according to their interest for the remainder of the project life.

Quick facts: Arrow Minerals Ltd

Price: 0.007 AUD

ASX:AMD
Market: ASX
Market Cap: $9.34 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Arrow Minerals Ltd named herein, including the promotion by the Company of Arrow Minerals Ltd in any Content on the Site, the Company receives...

FOR OUR FULL DISCLAIMER CLICK HERE

Full interview: Arrow Minerals drilling extends gold discovery at Divole West

Arrow Minerals Ltd (ASX:AMD) chief executive officer Howard Golden updates Proactive on results from the maiden drilling program at Divole West exploration permit in western Burkina Faso. Previous results from December 2019 are now confirmed to be part of the larger Dassa gold...

on 23/1/20

2 min read